Otis Shares Marginally Down Despite Strong Quarterly Results

Otis Worldwide Corp. (NYSE:OTIS) history dates back to 1853 when the company’s founder Elisha Otis invented the first safety-hoist elevator. In 1889, the company launched its first electric elevator. Otis diversified and expanded its operations in the international markets over the years to become a leading provider of escalators and associated services.

The Farmington, Connecticut-based company on Monday announced strong financial results for the fourth quarter along with an upbeat financial outlook for 2021. Otis reported earnings of $251 million, or 58 cents per share for the three months ended Dec. 31, versus 50 cents per share in the comparable period of 2019. On an adjusted basis, earnings rose to 66 cents per share, beating the consensus forecast of 59 cents per share.

Revenue came in at $3.49 billion, up 4.2 percent from the year-ago quarter, and above analysts’ average estimate of $3.36 billion.

The company’s CEO Judy Marks said in a statement, “Otis delivered a strong fourth quarter, ending a solid first year as an independent company. We returned to growth in the quarter while continuing to grow share, expand adjusted margin and generate robust cash flow demonstrating the dedication of our colleagues around the world to meet our commitments, even in trying economic times.”

Otis projected adjust profit in the range of $2.67 per share to $2.77 per share for 2021, and revenue between $13.3 billion to $13.6 billion. On the other hand, analysts on average expect adjusted earnings of $2.62 per share on revenue of $13.2 billion for the current fiscal year.

Otis shares marginally moved down on Monday morning despite impressive quarterly performance. Overall, Otis stock value has increased about 41 percent over the past year.