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Jun 30, 2024
Otis Q2 2024 Earnings Report
Otis demonstrated strong service performance, leading to mid-teens EPS growth.
Key Takeaways
Otis reported solid quarterly performance driven by the strength in the Service segment. The company's overall performance delivered mid-teens EPS growth and, based on this performance, Otis is raising its EPS outlook.
GAAP EPS up 13.3% and adjusted EPS up 15.2% with continued margin expansion
Service net sales up 3.0% and Service organic sales up 5.1%
Mod orders up 14%, backlog up 15%, up 17% at constant currency
Maintenance portfolio units increased 4.2%
Otis
Otis
Otis Revenue by Segment
Forward Guidance
Otis is revising its full year outlook, increasing adjusted EPS to $3.85 to $3.90.
Positive Outlook
- Net sales of $14.3 billion to $14.5 billion
- Organic sales up 1% to 3%
- Organic Service sales up 6% to 7%
- Adjusted operating profit of $2.40 billion to $2.45 billion, up $160 million to $190 million at constant currency; up $135 million to $175 million at actual currency
- Adjusted EPS of $3.85 to $3.90, up 9% to 10%; adjusted effective tax rate of approximately 25.25%
Challenges Ahead
- Organic New Equipment sales down mid-single digits
Revenue & Expenses
Visualization of income flow from segment revenue to net income