Otis Worldwide (OTIS) Delivers Solid Q2 Results with Improved Outlook

Otis Worldwide Corp. (NYSE:OTIS) has been around for more than a century. Its roots can be traced back to 1853, when 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. It has over 2 million customer units across the globe with installation in numerous famous buildings.

The elevator maker recently announced better-than-expected financial results for the second quarter. Otis reported earnings of 76 cents per share for the three months ended June 30, compared to 52 cents per share in the same period last year. Excluding certain items, the company reported adjusted earnings of 79 cents per share, beating the consensus forecast of 71 cents per share.

Revenue rose 22.2 percent to $3.70 billion, easily topping analysts’ average estimate of $3.45 billion. If we look at the performance of key segments, revenue from new equipment sales climbed 33.5 percent to $1.73 billion, while service revenue increased 13.8 percent to $1.97 billion.

Speaking on the results, CEO Judy Marks said in a statement, “Otis had an excellent first half with positive momentum continuing in the second quarter as we executed our long-term strategy and delivered for our customers amid strengthening demand and recovery in our end markets.”

Otis also raised its financial outlook for the full year. It expects adjusted earnings in the range of $2.89 per share to $2.93 per share, representing a year-over-year surge of 15-16 percent. In addition, revenue is expected to come between $14.1 and $14.2 billion, translating to a year-over-year increase of 10.5 to 11 percent.

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