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Otis Shares Going Up on Earnings Report, Elevated Guidance

Otis Worldwide shares ascended to a record after the elevator maker reported stronger-than-expected adjusted earnings and lifted its guidance.
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Otis Worldwide  (OTIS) - Get Otis Worldwide Corporation Report shares ascended to a record Monday, after the elevator maker reported stronger-than-expected first-quarter earnings and lifted guidance.

The stock recently traded at $75.35, up 5.7%. The stock on Monday touched a peak of $76.86, up 7.9%.

It has gained 20% in the past six months, in line with the broader market, as investors have been optimistic that the economy would recover from the pandemic.

The company’s earned $308 million, or 71 cents a share, up from $165 million, or 38 cents, in the year-earlier quarter. The latest adjusted earnings per share were 72 cents, topping the FactSet analyst consensus of 63 cents.

Otis posted revenue of $3.41 billion for the quarter, up 15% from $2.97 billion and beating the FactSet analyst consensus of $3.15 billion.

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Otis estimates adjusted EPS of $2.78 to $2.84 for all of 2021, above the analyst consensus of $2.74. 

And the company sees sales of $13.6 billion to $13.9 billion for the year, again beating the analyst consensus of $13.5 billion.

"Our new-equipment orders were up high teens, including growth in every region, and we saw increased organic sales and margin expansion in both segments,” Chief Executive Judy Marks said in a statement. 

That enabled Otis to raise its dividend by 20% -- a move reported a week ago -- and increase its share-buyback target to $500 million. Founder Jim Cramer interviewed Marks in February. She calmed safety concerns regarding riding in an elevator in a COVID world.

In other industrial technology news, Cramer last week offered solutions to the semiconductor shortage.