NYSE$OTIS

Otis Worldwide Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Otis demonstrated strong Service performance, achieving high single-digit Service sales growth, and returned to top-line growth.

Otis reported Q3 2024 net sales of $3.5 billion, with organic sales up 1.2%. GAAP EPS increased 47.3% to $1.34, and adjusted EPS increased 1.1% to $0.96. The company's Service-driven business model continued to show strength, with modernization organic sales accelerating and portfolio growth exceeding 4% for the eighth consecutive quarter.

  • GAAP EPS increased by 47.3%, while adjusted EPS rose by 1.1%.
  • Service net sales increased by 7.2%, with Service organic sales growing by 7.7%.
  • Maintenance portfolio units saw a 4.2% increase.
  • Modernization orders were up 3%, and backlog increased by 14%, or 12% at constant currency.

Headline financials

Total Revenue

$3.55B

Previous: $3.52B+0.7%
EPS

$1.34

Previous: $0.95+41.1%
Capital Expenditures

-$32M

Previous: -$34M+5.9%
Free Cash Flow

$540M

Previous: $376M+43.6%
Net Income

$540M

Previous: $376M+43.6%
Operating Income

$363M

Previous: $571M-36.4%
Cash & Equivalents

$827M

Previous: $1.64B-49.4%
Total Assets

$10.3B

Previous: $10.4B-1.2%
Stock-Based Comp

$16M

Previous: $15M+6.7%

Revenue & EPS history

Otis · Revenue · Quarterly

$3.55B

Q3 2024+0.7%vs Q3 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:

Tailwinds

  • Net sales of ~$14.2 billion
  • Organic sales up ~1.5%
  • Organic Service sales up ~6.5%
  • Adjusted operating profit of ~$2.375 billion, up ~$140 million at constant currency; up ~$105 million at actual currency
  • Adjusted EPS of ~$3.85, up ~9%; adjusted effective tax rate of approximately 25.0%

Headwinds

  • Organic New Equipment sales down mid to high 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 Q3 2024

Historical avgQ3 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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