Otis Q3 2021 Earnings Report
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
Otis
Otis
Otis 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