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Sep 30, 2021
Otis Q3 2021 Earnings Report
Delivered strong third quarter results with sales growth and margin expansion in both segments and improved 2021 outlook.
Key Takeaways
Otis Worldwide Corporation reported strong third quarter results with net sales of $3.6 billion, a 10.8% increase, and organic sales up by 8.1%. GAAP EPS increased by 26.2% and adjusted EPS increased by 11.6%. The company has improved its full-year outlook with organic sales expected to increase by 8.5 to 9.0% and adjusted EPS of approximately $2.95.
3Q Net sales up 10.8%; organic sales up 8.1%
3Q GAAP EPS up 26.2%; adjusted EPS up 11.6%
3Q New Equipment orders up 3.8%; backlog up 4%, 1% at constant currency
Improved outlook for full-year with organic sales up 8.5 to 9.0%, adjusted earnings per share of ~$2.95 and free cash flow of ~$1.5 to $1.55 billion
Revenue by Segment
Forward Guidance
Otis is improving its full year outlook:
Positive Outlook
- Net sales of ~$14.3 billion, up 11.8 to 12.3%
- Organic sales up 8.5 to 9.0%
- Organic New Equipment sales up 15.0 to 15.5%
- Organic Service sales up ~4.0%
- Adjusted operating profit of $2.18 to $2.19 billion, up $260 to $270 million at actual currency; up $195 to $205 million at constant currency
Challenges Ahead
- Adjusted EPS of ~$2.95, up ~17%; adjusted effective tax rate in a range of 28.5 to 29.0%
- Free cash flow of $1.5 to $1.55 billion with conversion of approximately 125% 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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