NEW YORK (TheStreet) -- Shares of United Technologies Corp. (UTX) are down by 2.59% to $114.56 at the start of trading on Monday morning, after the company issued updated 2015 earnings guidance that was below its previous estimate and analysts' expectations.
The company, which supplies high tech products and services to the aerospace and defense industry, said its full year earnings, excluding its Sikorsky Aircraft business, is anticipated to be between $6.35 and $6.55 per share.
Analysts have forecast for full year earnings of $7 per share.
Including Sikorsky the company is expecting earnings of $6.55 to $6.85 per share, below its previous range of $6.85 to $7.05 per share for the full year.
Additionally, United Technologies announced this morning that it is going to pursue the separation of its Sikorsky Aircraft unit. The company will decide by the end of the third quarter whether it will spin off or sell the helicopter unit.
"Our strategic review has confirmed that exiting the helicopter business is the best path forward for United Technologies," company CEO Gregory Hayes said in a statement.
"Sikorsky is the world's premier helicopter company and through a series of strategic wins is well positioned for long-term growth. However, separation of Sikorsky from the portfolio will allow both United Technologies and Sikorsky to better focus on their core businesses," Hayes added.
Insight From TheStreet Research Team:
We reiterate our bullish opinion on the stock despite not all of the businesses hitting on all cylinders. We believe a global economic revival will help the company grow ahead of expectations, and view the company's restructuring and potential for additional M&A action as supportive of our optimism.
-Ashenberg and Lang 'We Remain Bullish on United Technologies' Originally Published on 6/15/2015 on Trifecta Stocks.
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Separately, TheStreet Ratings team rates UNITED TECHNOLOGIES CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED TECHNOLOGIES CORP (UTX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel its strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: UTX Ratings Report