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Otis (NYSE:OTIS) Drops on Mixed Q3
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Otis (NYSE:OTIS) Drops on Mixed Q3

Story Highlights

Otis Worldwide has delivered a mixed set of third-quarter numbers with its top line missing estimates.

Otis Worldwide (NYSE:OTIS) shares are under pressure today after the manufacturer of elevators and escalators delivered a mixed set of third-quarter numbers. While revenue increased by 5.4% year-over-year to $3.5 billion, the figure lagged estimates by $40 million. EPS of $0.95, on the other hand, fared better than expectations by $0.07.

The higher topline was driven by gains in Otis’ Service vertical, maintenance portfolio, and an uptick in modernization orders. During the quarter, while New Equipment orders backlog rose by 3%, Modernization orders backlog increased by 17%.

Looking ahead to the full Fiscal year 2023, Otis expects adjusted net sales to rise by nearly 4% to $14.1 billion. Adjusted EPS is anticipated to rise by an impressive 11% to $3.52. Additionally, the company plans to execute share repurchases worth $800 million during the period.

Is OTIS a Good Stock to Buy?

Overall, the Street has a Moderate Buy consensus rating on Otis. The average OTIS price target of $90.50 implies a 17.1% potential upside. Shares of the company have declined by nearly 7% over the past six months amid a challenging macroeconomic backdrop.

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