Otis Faces Below-Expected 3Q Earnings, Cuts 2024 Projection

The Dow Jones reports that Otis posted third-quarter (3Q) earnings of US$540 million, or US$1.34 a share, up from US$376 million, or US$.91 a share, a year earlier. Excluding certain one-off items, Otis registered earnings of US$.96 a share, just shy of the average Wall Street estimate of US$.97, as per FactSet. Additionally, sales rose 0.7% to US$3.55 billion, also short of the average analyst estimate of US$3.59 billion, as tallied by FactSet. For 2024, Otis now anticipates adjusted earnings of about US$3.85, the low point of a previously targeted range between US$3.85 and US$3.90 a share. Otis targeted 2024 sales of roughly US$14.2 billion, below a previously estimated range, reflecting a mid-to-high single percentage digit decline in organic equipment sales. Otis projected adjusted free cash flow in a range between US$1.4 billion and US$1.5 billion.