NYSE$OTIS

Otis Worldwide Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Delivered strong fourth quarter and full year results with organic sales and EPS growth.

Otis reported a strong fourth quarter, with net sales up 2.2% and organic sales up 2.8%. GAAP EPS increased by 12.1% and adjusted EPS increased by 9.1%. The company's maintenance portfolio units grew by 3% and new equipment orders increased by 7.3%.

  • 4Q Net sales up 2.2% and organic sales up 2.8% with GAAP EPS up 12.1% and adjusted EPS up 9.1%
  • 4Q New Equipment orders up 7.3%; FY up 13.2%; backlog up 1%, up 3% at constant currency
  • Maintenance portfolio units up 3%
  • Announcing 2022 outlook* with organic sales up 2.5 to 4.5%, adjusted earnings per share of $3.20 to $3.30 and free cash flow of ~$1.6 billion

Headline financials

Total Revenue

$3.57B

Previous: $3.49B+2.2%
EPS (adj)

$0.72

Previous: $0.66+9.1%
Organic Sales Growth

2.8%

Previous: 1.3%+115.4%
Net Income

$310M

Previous: $251M+23.5%
Operating Income

$496M

Previous: $440M+12.7%
Gross Profit

$1.04B

Previous: $1.01B+2.7%
Cash & Equivalents

$1.57B

Previous: $1.78B-12.2%
Total Assets

$12.3B

Previous: $10.7B+14.6%
Stock-Based Comp

$17M

Previous: $19M-10.5%

Revenue & EPS history

Otis · Revenue · Quarterly

$3.57B

Q4 2021+2.2%vs Q4 2020
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Otis · $1.56B total across 1 segment · Q4 2021

  • New Equipment
    $1.56B+2.0%

Forward guidance

Otis is announcing its full year outlook:

Tailwinds

  • Net sales of $14.4 to $14.7 billion, up 1 to 3%
  • Organic sales up 2.5 to 4.5%
  • Organic New Equipment sales up 0.5 to 3.0%
  • Organic Service sales up 4 to 6%
  • Adjusted operating profit of $2.24 to $2.3 billion, up $95 to $165 million at constant currency; up $50 to $120 million at actual currency

Headwinds

  • Adjusted EPS of $3.20 to $3.30, up 6 to 10%; adjusted effective tax rate between 27.5% and 28.0%
  • Free cash flow of approximately $1.6 billion with conversion of 115 to 120% 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 Q4 2021

Historical avgQ4 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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