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United Technologies Corporation UTX provides high-end technology products and services to the building systems and aerospace industries worldwide. It has a diversified business mix and wide geographical presence to mitigate operating risk. The business mix and diversification allow the company to remain profitable even during tough economic times, delivering consistent earnings and dividend growth.
The company is susceptible to high operating risks following the Brexit referendum, as it has a huge operating exposure in the U.K. Fluctuations in foreign currency exchange rates and macroeconomic turbulences also affect the stability of the company’s cash flows. This limits the visibility regarding the company’s future performance. With the extent of competition increasing over time, investors have been eagerly awaiting the company’s latest earnings report.
UTX has some outstanding earnings track record and has delivered an average positive earnings surprise of 6.82% in the last four trailing quarters.
However, UTX currently carries a Zacks Rank #3 (Hold), but that could change following its second-quarter 2018 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: UTX beats on earnings. The Zacks Consensus Estimate called for earnings per share (EPS) of $1.85, while the company reported adjusted EPS of $1.97.
Revenue: Revenues beat. UTX posted net sales of $16,705 billion, which was higher than the Zacks Consensus Estimate of $16,264 million.
Key Stats to Note: Revenues in the reported quarter improved 6% year-over-year on an organic basis. The company has rained its earnings view for 2018 to $7.10-$7.25 per share range from the prior guidance of $6.95-$7.15 per share. Revenue for the full-year is predicted to lie within $63.5-$64.5 billion range, estimating an organic growth rate of 5-6%.
Stock Price: At the time of writing, the stock price of UTX was up nearly 2.5% ($3.21) in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is positive. We perceive that the company’s better-than-expected earnings result has primarily driven the optimistic sentiment.
As of Jul 23, 2018, UTX’s stock closed the trading session at $129.37 per share.
United Technologies Corporation Price
United Technologies Corporation Price | United Technologies Corporation Quote
Check back our full write up on this UTX earnings report later!
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