According to The Wall Street Journal the U.S. Navy is in talks with other governments to increase its purchase of CH-53K helicopters by 50% built by United Technologies' Sikorsky unit. There are currently negotiations underway to sell up to 100 of the helicopters, though it's not known what countries are looking to buy the heavy lift helicopters.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 92.36% to $1,335.00 million when compared to the same quarter last year. In addition, UNITED TECHNOLOGIES CORP has also vastly surpassed the industry average cash flow growth rate of 33.89%.
- The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that UTX's debt-to-equity ratio is low, the quick ratio, which is currently 0.70, displays a potential problem in covering short-term cash needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- UNITED TECHNOLOGIES CORP's earnings per share declined by 5.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED TECHNOLOGIES CORP increased its bottom line by earning $6.22 versus $5.35 in the prior year. This year, the market expects an improvement in earnings ($6.85 versus $6.22).
- You can view the full analysis from the report here: UTX Ratings Report