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Otis Worldwide Raises Earnings Guidance After Strong Quarterly Results

Otis Worldwide raises its earnings and sales guidance for 2021.
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Otis Worldwide  (OTIS) - Get OTIS WORLDWIDE CORPORATION Report raised its earnings guidance for 2021 as the elevator/escalator maker reported stronger-than-expected earnings for the second quarter.

The guidance and earnings news failed to lift the stock. It recently traded at $86.98, down 2%, likely suffering from profit-taking. Still, it has surged 35% over the past six months.

Otis raised its estimate for 2021 adjusted profit to a range of $2.89 to $2.93 a share from $2.78 to $2.84. The company boosted its sales forecast to a range of $14.1 billion to $14.2 billion, topping the FactSet analyst consensus of $13.9 billion.

For the second quarter, revenue climbed 22.2% to $3.70 billion from $3.03 billion. Analysts were expecting $3.45 billion.

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Service sales advanced 13.8% to $1.97 billion, above analysts’ consensus of $1.92 billion.

Net income rose to $326 million, or 76 cents a share, from $224 million, or 52 cents a share last year. Adjusted earnings per share rose to 79 cents from 56 cents. The latest figure exceed analysts’ prediction of 71 cents.