Otis Worldwide Corporation (OTIS) Has A Lot Of China Revenue, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About As He Said Everyone Won From Trump’s Japan Deal. Otis Worldwide Corporation (NYSE:OTIS) is one of the stocks Jim Cramer recently discussed.

Otis Worldwide Corporation (NYSE:OTIS) is a specialty industrial equipment company that deals with elevators, escalators, and associated products. Its shares have lost 3% year-to-date, primarily due to a major 12.3% drop in July. The stock fell after Otis Worldwide Corporation (NYSE:OTIS)’s second-quarter earnings results saw its $3.61 billion revenue miss analyst estimates of $3.71 billion. Additionally, the firm’s New Equipment business saw China sales fall by 20%. Cramer quoted Otis Worldwide Corporation (NYSE:OTIS)’s CEO as saying that the business remains strong:

“Otis, look I’m, Judy Marks is going to come on Mad Money, and she has held in and done great things. And they’ve had a lot of service revenue, including China. She’d tell you over and over again that that business remains very strong. So I have to find out more, that was a very tough hit. Very good company. That’s a spinoff of United Technologies.

“Yeah no Otis this was the first big miss. Remember, she’s a lot China. But you don’t see a lot of cranes. There are not a lot of cranes in this country.”

Pixabay / Public Domain

Back in 2024, Cramer had asserted that Otis Worldwide Corporation (NYSE:OTIS) could overcome Chinese weakness due to its presence in the repair and refurbishment market:

“Otis Worldwide’s up 121% since the breakup — thank you, Judy Marks — gives you 134% total return including dividends. The elevator business is now worth nearly $40 billion all on its own. Look, a lot of people think of Otis as a traditional movement play — cyclical, hostage to new construction — but in reality the company gets the vast bulk of its money from servicing and repairing existing elevators, which is why even though China’s soft, you still got to repair them.”

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Disclosure: None. This article is originally published at Insider Monkey.