Otis Worldwide Corp · Q4 2020 earnings

Briefing

Otis delivered strong results with organic sales growth and announced 2021 outlook.

Otis reported a 4.2% increase in fourth-quarter net sales, with a 1.3% organic growth. GAAP diluted earnings per share (EPS) increased 16.0% to $0.58, and adjusted diluted EPS increased 40.4% to $0.66.

• 4Q Net sales up 4.2% with organic growth of 1.3%.
• 4Q GAAP operating profit up $4 million with 40 bps of margin contraction.
• 4Q Adjusted operating profit up $36 million with 50 bps of margin expansion.
• Announcing 2021 outlook with organic sales up 2 to 4%, adjusted earnings per share of $2.67 to $2.77 and free cash flow conversion ~120%

Headline financials

Revenue & EPS history

Otis is announcing its full year outlook: Net sales of $13.3 to $13.6 billion, up 4.5 to 6.5%, Organic sales up 2 to 4%, Adjusted operating profit of $2.05 to $2.1 billion, up $125 to $175 million at actual currency; up $75 to $125 million at constant currency, Adjusted EPS $2.67 to $2.77, up 6 to 10%; adjusted effective tax rate of approximately 29.5%, Free cash flow of $1.3 to $1.4 billion with conversion of approximately 120% of GAAP net income