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Dec 31, 2020

Otis Q4 2020 Earnings Report

Otis delivered strong results with organic sales growth and announced 2021 outlook.

Key Takeaways

Otis reported a 4.2% increase in fourth-quarter net sales, with a 1.3% organic growth. GAAP diluted earnings per share (EPS) increased 16.0% to $0.58, and adjusted diluted EPS increased 40.4% to $0.66.

4Q Net sales up 4.2% with organic growth of 1.3%.

4Q GAAP operating profit up $4 million with 40 bps of margin contraction.

4Q Adjusted operating profit up $36 million with 50 bps of margin expansion.

Announcing 2021 outlook with organic sales up 2 to 4%, adjusted earnings per share of $2.67 to $2.77 and free cash flow conversion ~120%

Total Revenue
$3.49B
Previous year: $3.35B
+4.2%
EPS
$0.66
Previous year: $0.51
+29.4%
Organic sales growth
1.3%
Gross Profit
$1.01B
Previous year: $966M
+4.8%
Cash and Equivalents
$1.78B
Previous year: $1.45B
+23.2%
Free Cash Flow
$238M
Total Assets
$10.7B
Previous year: $9.69B
+10.6%

Otis

Otis

Otis Revenue by Segment

Forward Guidance

Otis is announcing its full year outlook: Net sales of $13.3 to $13.6 billion, up 4.5 to 6.5%, Organic sales up 2 to 4%, Adjusted operating profit of $2.05 to $2.1 billion, up $125 to $175 million at actual currency; up $75 to $125 million at constant currency, Adjusted EPS $2.67 to $2.77, up 6 to 10%; adjusted effective tax rate of approximately 29.5%, Free cash flow of $1.3 to $1.4 billion with conversion of approximately 120% of GAAP net income

Positive Outlook

  • Net sales of $13.3 to $13.6 billion, up 4.5 to 6.5%
  • Organic sales up 2 to 4%
  • Organic New Equipment sales up 2 to 5%
  • Organic Service sales up 2 to 4%
  • Adjusted operating profit of $2.05 to $2.1 billion, up $125 to $175 million at actual currency; up $75 to $125 million at constant currency

Revenue & Expenses

Visualization of income flow from segment revenue to net income