NYSE$OTIS

Otis Worldwide Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Otis demonstrated strong service performance, leading to mid-teens EPS growth.

Otis reported solid quarterly performance driven by the strength in the Service segment. The company's overall performance delivered mid-teens EPS growth and, based on this performance, Otis is raising its EPS outlook.

  • GAAP EPS up 13.3% and adjusted EPS up 15.2% with continued margin expansion
  • Service net sales up 3.0% and Service organic sales up 5.1%
  • Mod orders up 14%, backlog up 15%, up 17% at constant currency
  • Maintenance portfolio units increased 4.2%

Headline financials

Total Revenue

$3.6B

Previous: $3.72B-3.2%
EPS

$1.02

Previous: $0.92+10.9%
Capital Expenditures

-$24M

No prior period
Free Cash Flow

$415M

Previous: $376M+10.4%
Net Income

$415M

Previous: $376M+10.4%
Operating Income

$570M

Previous: $580M-1.7%
Cash & Equivalents

$942M

Previous: $1.22B-22.7%
Total Assets

$9.86B

Previous: $10.1B-2.7%
R&D Expense

$39M

No prior period
Stock-Based Comp

$20M

Previous: $19M+5.3%

Revenue & EPS history

Otis · Revenue · Quarterly

$3.6B

Q2 2024-3.2%vs Q2 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Otis · $3.52B total across 2 segments · Q3 2023

  • Service
    $2.09B+10.1%
  • New Equipment
    $1.44B-0.8%

Forward guidance

Otis is revising its full year outlook, increasing adjusted EPS to $3.85 to $3.90.

Tailwinds

  • Net sales of $14.3 billion to $14.5 billion
  • Organic sales up 1% to 3%
  • Organic Service sales up 6% to 7%
  • Adjusted operating profit of $2.40 billion to $2.45 billion, up $160 million to $190 million at constant currency; up $135 million to $175 million at actual currency
  • Adjusted EPS of $3.85 to $3.90, up 9% to 10%; adjusted effective tax rate of approximately 25.25%

Headwinds

  • Organic New Equipment sales down mid-single digits

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 2024

Historical avgQ2 2024

-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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