Otis Lowers Earnings Expectations on Continued Weak Demand in China

Otis expects full-year net sales of US$14.1 billion-US$14.4 billion, below estimates of US$14.6 billion as the Chinese property market crisis continues to weaken demand for new equipment, Reuters is among outlets to report. According to a January 29 4^th Quarter (4Q) 2024 earnings call, net sales in 4Q 2024 fell 7.4% to US$1.36 billion while total net sales rose 1.5% to US$3.68 billion thanks to strong demand for maintenance and repair. Shares of the OEM were down 2.5% before the bell at the New York Stock Exchange, with Otis expecting 2025 adjusted profit between US$4 and US$4.10 per share, versus analysts’ average estimate of US$4.14.