United Technologies Dips 7 Percent on Lackluster Earnings Hit by Strong Dollar
United Technologies (UTX) was the worst performing stock in the S&P 500 on Tuesday, after reporting lackluster second quarter earnings. The stock was TheStreet’s Move of the Day. Shares fell after earnings per share came in at $1.84 a share, a decline of 6 percent year-over-year and below estimates of $1.71. Stripping out currency headwinds, restructuring and one-time items, the company would have earned $1.81 a share. Revenue totaled $16.3 billion, a drop of 5 percent year-over-year, slightly missing the $16.52 billion analysts were looking for. 'Through the first half of the year, the businesses delivered 3 percent organic sales growth in what continues to be a slow growth global economy. This solid growth contributed to a 6 percent increase in EPS on a constant currency basis, excluding the impact of gains and restructuring,' said Gregory Hayes, UTC President and Chief Executive Officer. 'Continued strength in the U.S. dollar has had a significant adverse impact on our results this year.' The company lowered earnings guidance. United Technologies forecasts net income for the year of $6.15 to $6.30, compared to a previously reported $6.35 to $6.55. This excludes gains from its $9 billion sale of helicopter maker Sikorsky to Lockheed Martin (LMT), in a deal announced Monday. TheStreet’s Scott Gamm reports from New York.
