Otis Beats for Q4 and Offers 2022 Guidance

This morning, Otis Worldwide (OTIS) said it made Q4 earnings of 72 cents per share. That’s up from 66 cents per share from one year ago. The consensus on Wall Street had been for earnings of 68 cents per share.

Quarterly net sales were up 2.2% while organic sales rose by 2.8%. Adjusted operating profit margin was 14.6%, and New Equipment orders were up 7.3% in Q4.

For the year, the elevator folks made $3.01 per share. That’s an increase of 19.4% over last year. Full year net sales increased 12.1% “driven by a 8.9% increase in organic sales and a 3.0% benefit from foreign exchange.”

“Otis delivered a strong fourth quarter, capping an excellent year as we continued to execute on our long-term strategy and provide innovative solutions and services to our customers. Despite ongoing macro challenges in 2021, we achieved consistent and broad-based organic sales growth and margin expansion, grew our maintenance portfolio at the highest rate in over 10 years and gained share in New Equipment for the second consecutive year. Additionally, our continued robust cash flow generation enabled us to strategically deploy capital to create long-term value for all stakeholders,” said President and CEO Judy Marks. “We are confident this momentum will continue in 2022 and beyond, positioning us to deliver on our financial commitments and advance ESG priorities.”

Now let’s turn to guidance. For all of 2022, Otis expects earnings to range between $3.20 and $3.30 per share. That’s an increase of 6% to 10% over last year. Wall Street had been expecting $3.29 per share.

Some more details. Otis also expects free cash flow of $1.6 billion. The company sees full-year net sales of $14.4 to $14.7 billion. That’s up 1% to 3% over last year. Otis sees organic sales rising by 2.5% to 4.5%.

Posted by on January 31st, 2022 at 6:45 am


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