NYSE$OTIS

Otis Worldwide Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Delivered strong third quarter results with sales growth and margin expansion in both segments and improved 2021 outlook.

Otis Worldwide Corporation reported strong third quarter results with net sales of $3.6 billion, a 10.8% increase, and organic sales up by 8.1%. GAAP EPS increased by 26.2% and adjusted EPS increased by 11.6%. The company has improved its full-year outlook with organic sales expected to increase by 8.5 to 9.0% and adjusted EPS of approximately $2.95.

  • 3Q Net sales up 10.8%; organic sales up 8.1%
  • 3Q GAAP EPS up 26.2%; adjusted EPS up 11.6%
  • 3Q New Equipment orders up 3.8%; backlog up 4%, 1% at constant currency
  • Improved outlook for full-year with organic sales up 8.5 to 9.0%, adjusted earnings per share of ~$2.95 and free cash flow of ~$1.5 to $1.55 billion

Headline financials

Total Revenue

$3.62B

Previous: $3.27B+10.8%
EPS (adj)

$0.77

Previous: $0.69+11.6%
Organic Sales Growth

8.1%

Previous: -1.2%+775.0%
Free Cash Flow

$331M

Previous: $266M+24.4%
Net Income

$331M

Previous: $266M+24.4%
Operating Income

$542M

Previous: $454M+19.4%
Gross Profit

$1.06B

Previous: $979M+8.3%
Cash & Equivalents

$1.55B

Previous: $1.73B-10.4%
Total Assets

$10.5B

Previous: $10.5B-0.0%
Stock-Based Comp

$17M

Previous: $17M+0.0%

Revenue & EPS history

Otis · Revenue · Quarterly

$3.62B

Q3 2021+10.8%vs Q3 2020
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Otis · $3.62B total across 2 segments · Q3 2021

  • Service
    $1.94B
  • New Equipment
    $1.68B+18.1%

Forward guidance

Otis is improving its full year outlook:

Tailwinds

  • Net sales of ~$14.3 billion, up 11.8 to 12.3%
  • Organic sales up 8.5 to 9.0%
  • Organic New Equipment sales up 15.0 to 15.5%
  • Organic Service sales up ~4.0%
  • Adjusted operating profit of $2.18 to $2.19 billion, up $260 to $270 million at actual currency; up $195 to $205 million at constant currency

Headwinds

  • Adjusted EPS of ~$2.95, up ~17%; adjusted effective tax rate in a range of 28.5 to 29.0%
  • Free cash flow of $1.5 to $1.55 billion with conversion of approximately 125% of GAAP net income

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 Q3 2021

Historical avgQ3 2021

-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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