Otis Worldwide (OTIS) Is Off To A Great Start In 2021

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 Connecticut-based company is off to a great start this year. It recently announced better-than-expected financial results for the first quarter. Otis reported earnings of $308 million, or 71 cents per share for the three months ended March 31, as compared to $165 million, or 60 cents per share in the same period of 2020.

On an adjusted basis, the company earned 72 cents per share, beating the consensus forecast of 63 cents per share. Revenue for the quarter jumped 14.9 percent on a year-over-year basis to $3.408 billion, ahead of analysts’ average estimate of $3.154 billion.

CEO Judy Marks expressed her satisfaction over the results. She said in a statement, “Otis had an excellent start to the year. Our New Equipment orders were up high teens, including growth in every region, and we saw increased organic sales and margin expansion in both segments. Continued robust cash flow generation enabled us to buy back $300 million of shares early in the year.”

Otis also issued its financial guidance for fiscal 2021. It expects to report earnings in the range of $2.78 per share to $2.84 per share and revenue between $13.6 billion and $13.9 billion for the full year. The outlook is better than analysts’ estimate of $2.74 per share for earnings and $13.5 billion for revenue.

Suggested Article: 10 Biggest Fast Food Chains in the World