NYSE$OTIS

Otis Worldwide Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Delivered high-single digit organic sales growth in both segments and mid-single digit adjusted EPS growth

Otis reported a strong second quarter with a 9.5% increase in organic sales and a 7.0% increase in adjusted EPS. The company is raising its full-year guidance and increasing share repurchases.

  • Net sales increased by 6.7% and organic sales increased by 9.5%.
  • GAAP EPS increased by 18.4% and adjusted EPS increased by 7.0%.
  • Maintenance portfolio units increased by 4.2%.
  • Free cash flow was $409 million, representing 109% of net income.

Headline financials

Total Revenue

$3.72B

Previous: $3.49B+6.7%
EPS (adj)

$0.92

Previous: $0.86+7.0%
Organic Sales Growth

9.5%

Previous: 0.4%+2275.0%
Free Cash Flow

$376M

Previous: $321M+17.1%
Net Income

$376M

Previous: $321M+17.1%
Operating Income

$580M

Previous: $487M+19.1%
Gross Profit

$1.08B

Previous: $983M+10.2%
Cash & Equivalents

$1.22B

Previous: $1.22B+0.1%
Total Assets

$10.1B

Previous: $9.91B+2.2%
Stock-Based Comp

$19M

Previous: $15M+26.7%

Revenue & EPS history

Otis · Revenue · Quarterly

$3.72B

Q2 2023+6.7%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Otis · $3.72B total across 2 segments · Q2 2023

  • Service
    $2.12B+8.3%
  • New Equipment
    $1.6B+4.6%

Forward guidance

Otis is revising its full year outlook with sales up 3.5 to 5.5% at actual currency, adjusted EPS of $3.45 to $3.50 and reiterating free cash flow of $1.5 to $1.55 billion. Full-year share repurchase target increased to $800 million.

Tailwinds

  • Adjusted net sales of $14.0 to $14.3 billion, up 3.5 to 5.5%
  • Organic sales up 4.5 to 6%
  • Organic New Equipment sales up 3 to 5%
  • Organic Service sales up 6 to 7%
  • Adjusted EPS of $3.45 to $3.50, up 9 to 10%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.1%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+4.0%

Avg return

30 days after

30%

9 / 30 earnings

Positive

+10.8%

Q1 2021

Best reaction

-6.7%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-1.8%-7.7%
Q4 2025-1.9%-4.9%+2.2%
Q3 2025+2.3%-1.2%-2.7%
Q2 2025-1.9%-0.7%-0.2%
Q1 2025-6.7%-5.4%-2.2%
Q4 2024-1.3%-1.4%+4.1%
Q3 2024-3.1%-1.9%+1.6%
Q2 2024-5.4%-5.4%-4.2%
Q1 2024-4.6%-4.2%+0.1%
Q4 2023-0.5%+1.0%+6.3%
Q3 2023-2.3%-0.9%+10.1%
Q2 2023+2.4%+3.9%-4.2%
Q1 2023+3.9%+4.0%-1.0%
Q4 2022+2.0%+1.8%+5.7%
Q3 2022+1.7%+2.6%+14.3%
Q2 2022+5.7%+7.6%+3.5%
Q1 2022-1.4%-0.8%+0.1%
Q4 2021+1.0%-0.4%-4.8%
Q3 2021-6.3%-6.2%-1.4%
Q2 2021-0.3%+1.2%+2.9%
Q1 2021+10.8%+9.2%+9.1%
Q4 2020-0.0%-1.1%+3.6%
Q3 2019-1.9%+0.3%+8.7%
Q3 2020-2.3%-3.4%+6.2%
Q2 2019-0.3%-0.5%+0.3%
Q2 2020+10.3%+7.6%+8.4%
Q1 2019+0.0%-6.9%+13.0%
Q1 2020+0.0%-6.9%+13.0%
Q4 2019+0.0%-6.9%+13.0%
Q4 2018+0.0%+2.9%+21.2%

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