Otis Worldwide (OTIS) to Post Q3 Earnings: What's in Store?
Otis Worldwide Corporation OTIS is scheduled to report third-quarter 2023 results on Oct 25 before the opening bell.
In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 7% and rose 7% year over year. Net sales surpassed the consensus mark by 4.8% and improved 6.7% year over year. Its earnings topped the consensus mark in each of the last 14 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at 87 cents in the past 60 days. The metric is likely to have witnessed 8.8% growth year over year.
The consensus mark for net sales is pegged at $3.48 billion, suggesting a 4.1% increase from the year-ago reported figure of $3.34 billion.
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company’s third-quarter 2023 results are likely to be aided by higher volume, favorable pricing and productivity.
Otis Worldwide is boosting business performance by implementing a range of strategies, including acquisitions, product innovations, and the integration of new technologies driven by ongoing research and development efforts. These initiatives are expected to contribute positively to the third-quarter results.
Our model predicts New Equipment revenues to grow 4.4% year over year to $1,495.5 million. Service revenues will rise 5% to $1,987.6 million compared with the prior year, per our estimate.
However, increased costs in delivery orders are likely to have negatively impacted the bottom line. The company anticipates a high inflationary environment for food and labor to persist for some time. Our model suggests cost of Products and Services sold to increase 2.4% year over year to $2,431 million.
Otis Worldwide Corporation Price and EPS Surprise
Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Otis Worldwide this time around. That is because a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here.
Earnings ESP: Otis Worldwide has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Otis Worldwide carries a Zacks Rank #3.
Stocks Poised to Beat Earnings
Here are some stocks from the Zacks Construction space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
Construction Partners, Inc. ROAD has an Earnings ESP of +2.91% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Construction Partners have climbed 30.9% in the past year. ROAD’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 10.6%.
Owens Corning OC has an Earnings ESP of +2.18% and a Zacks Rank #2.
Shares of Owens Corning have improved 42.9% in the past year. OC’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 18.2%.
Aspen Aerogels, Inc. ASPN has an Earnings ESP of +9.30% and a Zacks Rank #2.
Shares of Aspen Aerogels have declined 23.5% in the past year. ASPN’s earnings outpaced the consensus mark in the trailing three out of four quarters and missed once, the average surprise being 19.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Owens Corning Inc (OC) : Free Stock Analysis Report
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
Otis Worldwide Corporation (OTIS) : Free Stock Analysis Report
