FARMINGTON, Conn. - Otis Worldwide Corporation (NYSE:OTIS) reported a mixed first quarter for 2024, with adjusted earnings per share (EPS) of $0.88, slightly surpassing the analyst consensus of $0.87.
However, the company experienced a slight decline in its stock price, down 0.49%, following a revenue shortfall, with reported figures of $3.44 billion against expectations of $3.46 billion.
The modest downturn in stock price reflects investor sentiment after the company reported a revenue miss, despite delivering a 10.0% increase in adjusted EPS compared to the same quarter last year. The global leader in elevator and escalator manufacturing, installation, and service saw a 2.7% rise in net sales and a 3.8% organic growth, driven by a 5.8% increase in Service net sales, which grew organically by 6.5%.
Otis' CEO, Judy Marks, commented on the results, highlighting the strength of the company's service-driven business model and the growth in the maintenance portfolio, which increased by 4.1%. Marks also noted the expansion of service margins both YoY and quarter over quarter, attributing the strong performance to operational excellence and the company's strategic focus.
Looking ahead, Otis revised its full-year outlook for 2024, raising its adjusted EPS guidance to a range of $3.83 to $3.90. This updated forecast compares favorably to the analyst consensus of $0.86 for the full year. The company also anticipates full-year revenue to be between $14.5 billion and $14.8 billion, which is slightly below the consensus estimate of $14.702 billion.
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