Otis stock set to fall after profit tops expectations but revenue comes up shy, and full-year outlook was cut

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Shares of Otis Worldwide Corp. OTIS, +2.64% were indicated down about 1% in premarket trading Wednesday, after the elevator and escalator company reported third-quarter profit that topped expectations but revenue that came up a bit shy and cuts its full-year outlook, citing dollar strength and headwinds in China. Net income was $324 million, or 77 cents a share, after $331 million, or 77 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 80 cents was above the FactSet consensus of 79 cents. Sales dropped 7.6% to $3.34 billion, below the FactSet consensus of $3.44 billion. The company said unfavorable currency translation was a 7.2% drag on sales. Total costs and expenses fell 8.2% to $2.83 billion, as operating profit margin improved to 15.8% from 15.0%. For 2022, the company cut its guidance ranges for adjusted EPS to $3.11 to $3.15 from $3.17 to $3.21 and for sales to $13.4 billion to $13.5 billion from $13.6 billion to $13.8 billion. Otis’ stock has lost 5.3% over the past three months while the S&P 500 SPX, +1.63% has slipped 1.6%.

This article was originally published by Marketwatch.com. Read the original article here.

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