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Jun 30, 2021
Otis Q2 2021 Earnings Report
Delivered strong second quarter results with sales growth and margin expansion in both segments and double-digit New Equipment orders growth; improved 2021 outlook
Key Takeaways
Otis Worldwide Corporation reported strong second quarter 2021 results, with net sales of $3.7 billion, a 22.2% increase compared to the prior year, and organic sales up 15.4%. GAAP EPS increased 46.2% to $0.76, and adjusted EPS increased 41.1% to $0.79. The company improved its full-year outlook, raising the share repurchase target to $750 million.
Net sales increased by 22.2%, with organic sales up 15.4%.
GAAP EPS increased by 46.2%, and adjusted EPS increased by 41.1%.
New Equipment orders increased by 23.9%, and backlog increased by 10%.
GAAP cash flow from operations was $533 million, and free cash flow was $493 million, representing 151% of net income.
Revenue by Segment
Forward Guidance
Otis is improving its full year outlook:
Positive Outlook
- Net sales of $14.1 to $14.2 billion, up 10.5 to 11%
- Organic sales up 7.5 to 8%
- Organic New Equipment sales up 12 to 13%
- Organic Service sales up 4 to 4.5%
- Adjusted operating profit of $2.16 to $2.18 billion, up $240 to $260 million at actual currency; up $170 to $190 million at constant currency
Challenges Ahead
- Adjusted EPS of $2.89 to $2.93, up 15 to 16%; adjusted effective tax rate of approximately 29.0%
- Free cash flow of $1.45 to $1.5 billion with conversion of approximately 120% of GAAP net income
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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