Otis Worldwide tops fourth-quarter estimates
- Otis Worldwide announces impressive fourth-quarter financial topping all analyst estimates.
- Tops the $0.68 analyst estimate by $0.04, recording $0.72 EPS in the fourth quarter.
- Records $3.6 billion in net sales in the fourth quarter
Otis Worldwide (NYSE: OTIS) stock shoots 4% after reporting $0.72 fourth-quarter EPS, which tops the $0.68 analyst estimate by $0.04. However, the company recorded revenue of $3.57 billion in the fourth quarter, less than the $3.5 billion consensus estimate. The full-year EPS for 2022 came to about $3.20-$3.30.
Otis tops Q4 consensus earnings estimates
Otis Worldwide reports strong full year and fourth quarter 2021 financial results showcasing an increase in EPS and organic sales. The company recorded a 2.2% increase in net sales and a 2.8% increase in organic sales. Adjusted EPS and GAAP EPS also went up by 9.1% and 12.1% respectively.
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Otis’ Chief Executive Officer and President, Judy Marks, said:
“Otis delivered a strong fourth quarter, capping an excellent year as we continued to execute on our long-term strategy and provide innovative solutions and services to our customers.”
The CEO continued to say:
“despite ongoing macro challenges in 2021, we achieved consistent and broad-based organic sales growth and margin expansion, grew our maintenance portfolio at the highest rate in over 10 years and gained share in New Equipment for the second consecutive year.”
The CEO claimed that they’re confident they can keep this momentum going until next year and beyond and that this momentum will position them to deliver on all their financial commitments and improved ESG priorities.
Key financial highlights
The company recorded $3.6 billion in net sales in the fourth quarter, representing an increase of 2.2%, accompanied by an organic sales increase of around 2.8%. New Equipment organic sales went up 1.2%, and Service went up 4%.
In the same quarter, Otis reported a $56 million increase in GAAP operating profit and an $11 million increase in operating profit. Reduced non-recurring separation costs helped drive the growth of GAAP operating profit margins. As a result, GAAP operating profit margin grew to 13.9%, representing 130 base points increase.
The company’s 12.1% full-year net sales increase was driven by an organic sales growth of 8.9% and a foreign exchange benefit of 3%.
Adjusted operating profit and GAAP increased by $272 million and $469 million, respectively.