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Mar 31, 2024

Otis Q1 2024 Earnings Report

Otis demonstrated strength in its service-driven business model and modernization efforts, leading to an increased EPS outlook and share repurchase target.

Key Takeaways

Otis reported a 2.7% increase in net sales and a 3.8% increase in organic sales, driven by a strong service sector performance. The company's GAAP EPS increased by 8.9% and adjusted EPS increased by 10.0%. Due to a strong first quarter, Otis increased its EPS outlook and share repurchase target.

Net sales increased by 2.7% with organic sales up by 3.8%, driven by a 5.8% increase in service net sales.

GAAP EPS increased by 8.9% and adjusted EPS increased by 10.0%, with operating profit margin expansion.

New Equipment orders were down 10%, while Mod orders were up 13%.

The company updated its full-year outlook, increasing adjusted EPS to $3.83 to $3.90 and the share repurchase target to $1 billion.

Total Revenue
$3.44B
Previous year: $3.35B
+2.7%
EPS
$0.88
Previous year: $0.8
+10.0%
Organic sales growth
3.8%
Previous year: 3.6%
+5.6%
Gross Profit
$1.03B
Previous year: $996M
+3.3%
Cash and Equivalents
$884M
Previous year: $1.12B
-20.9%
Free Cash Flow
$140M
Previous year: $253M
-44.7%
Total Assets
$9.79B
Previous year: $9.85B
-0.5%

Otis

Otis

Otis Revenue by Segment

Forward Guidance

Otis is revising its full year outlook:

Positive Outlook

  • Net sales of $14.5 to $14.8 billion
  • Organic sales up 3 to 5%
  • Organic Service sales up 6 to 7%
  • Adjusted operating profit of $2.40 to $2.45 billion
  • Adjusted EPS of $3.83 to $3.90, up 8 to 10%

Revenue & Expenses

Visualization of income flow from segment revenue to net income