United Tech's 2011 View Looks Light
NEW YORK (
) --
United Technologies
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gave a profit outlook for fiscal 2011 late Thursday that leaves plenty of downside to Wall Street's current expectations.
The Hartford, Conn.-based Dow component, whose products include elevators, HVAC and refrigeration equipment and electronic security systems, said it expects earnings of $5.05 to $5.30 a share for the coming year with revenue projected to range between $56 billion and $57 billion.
That view compares to an average estimate of analysts polled by
Thomson Reuters
for earnings of $5.30 a share on revenue of $57.1 billion for the 12 months ending in December 2011.
"In 2011, we expect continued broad end market improvement, with particular strength in emerging markets and commercial aerospace aftermarket," said Louis Chenevert, the company's chairman and CEO, in a statement. "Five of the six businesses expect solid organic sales growth even with a moderate outlook for the North American and European commercial construction markets."
Chenevert continued: "Sales growth combined with restructuring benefits, productivity gains, and effective capital allocation will enable solid earnings growth in 2011, even as we face higher pension, tax, and engineering & development costs.
The company also reaffirmed its projection for earnings of $4.70 a share on sales of $54 billion for fiscal 2010, which ends this month. The sales view for 2011 implies growth of 4%-6% from this year's anticipated total.
United Technologies' shares finished Thursday at $77.63. down 6 cents. Based on the regular session close, the stock was up nearly 12% so far in 2010 vs. a gain of 9% for the
Dow Jones Industrial Average
. Shares were quoted down nearly 3% at $75.35 in extended trading but volume was a light 22,300.
Wall Street is pretty bullish on United Technologies, which has beaten the average analysts' estimate for its earnings in six straight quarters; although never by more than 4%. Of the 22 analysts covering the stock, 16 are at either strong buy (7) or buy (9), and the median 12-month price target of $84.50 implies upside of 9% from current levels.
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Written by Michael Baron in New York.
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