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Otis Worldwide Corporation OTIS is scheduled to report third-quarter 2021 results on Oct 25, before the opening bell.
In the last reported quarter, the company’s earnings and net sales beat the Zacks Consensus Estimate by 11.3% and 7.1%, respectively. On a year-over-year basis, earnings and net sales grew 41.1% and 22.2%, respectively.
Otis’ earnings topped the consensus mark in all the last six quarters, with the average being 19.7%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has moved 1.4% south to 73 cents over the past 30 days. The estimated figure indicates 5.8% growth from the year-ago level. The consensus mark for net sales is pegged at $3.56 billion, suggesting an 8.8% increase from the year-ago reported figure of $3.27 billion.
Otis Worldwide Corporation Price and EPS Surprise
Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company is expected to have registered higher sales and earnings in the third quarter, given favorable service pricing as well as productivity initiatives in both New Equipment and Service segments.
Increased organic sales, margin expansion across the segments, strong business strategy, and robust data and technology-based innovations are expected to benefit its quarterly results. Otis has been focusing on improving the business on the back of various strategies like acquisitions, product innovations, and new technologies through continuous research and development.
The company expects New Equipment (accounting for 42% of total revenues) to be strong in the third quarter as well. The Zacks Consensus Estimate for New Equipment revenues is pegged at $1,537 million, which indicates an increase of 8% from $1,423 million in the year-ago period.
For Service (accounting for 58% of the company’s total revenues), it expects revenues to increase for the quarter-to-be-reported, given year-over-year comparisons. Service revenues were weak last year. The Zacks Consensus Estimate for Service revenues is pegged at $2,002 million, which indicates an increase of 8.5% from $1,845 million in the year-ago period.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Otis this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: The company has an Earnings ESP of +0.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Otis carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
KBR, Inc. KBR has an Earnings ESP of +2.66% and a Zacks Rank #2.
Jacobs Engineering Group Inc. J has an Earnings ESP of +6.49% and holds a Zacks Rank #2.
North American Construction Group Ltd. NOA has an Earnings ESP of +0.88% and a Zacks Rank #2.
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KBR, Inc. (KBR) : Free Stock Analysis Report
North American Construction Group Ltd. (NOA) : Free Stock Analysis Report
Jacobs Engineering Group Inc. (J) : Free Stock Analysis Report
Otis Worldwide Corporation (OTIS) : Free Stock Analysis Report
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