Otis Worldwide Corporation (NYSE: OTIS ) is the world's largest manufacturer, installer, and servicer of elevators and escalators. While not a high-growth, trendy tech stock, Otis offers a different kind of appeal: stable, high-margin, recurring revenue streams underpinned by a strong economic moat. I gravitate towards these types of companiesI am an investment professional with a background in both equity and real estate markets. I specialize in identifying long-only opportunities that offer safe and growi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________________________ FORM 10-Q ____________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------|--------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Otis reported net sales of $3.5 billion with organic sales growth of approximately 1% in Q3 2024, while adjusted EPS grew approximately 1% or $0.01 compared to a tough prior year comparison of approximately 19% EPS growth [10][11] - Year-to-date, adjusted EPS growth reached 8.2%, and the company generated $381 million in adjusted free cash flow in Q3, totaling approximately $900 million year-to-date [5][14] Business Line Data and Key Metrics Changes - The Service segment delivered high single-digit growth of 7.7% in Q3, contributing to a year-to-date service organic sales growth of 6.4% [4][11] - New Equipment organic sales were down 8.2%, primarily due to a greater than 20% decline in China, while excluding China, New Equipment sales increased low single digits [11][12] - Modernization organic sales accelerated by about 14% in Q3, bringing year-to-date organic sales to approximately 10% [11][12] Market Data and Key Metrics Changes - New Equipment orders decreased by 3% in Q3, with a significant decline of over 20% in China, while orders in the Americas grew more than 20% [6][10] - Orders in APAC delivered high single-digit growth, driven by strength in Japan and Southeast Asia, while EMEA experienced high single-digit declines due to weakness in Western and Northern Europe [6][10] Company Strategy and Development Direction - The company is focusing on a service-driven business model, with a commitment to expanding its modernization backlog and improving operational efficiency through the Uplift program [20][29] - Otis anticipates a resilient Service market, expecting global install base growth in mid-single digits, while New Equipment markets are expected to face challenges, particularly in China [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the New Equipment market in China remains weak, with expectations of a 15% decline in 2024, while the Americas are showing signs of improvement [15][32] - The company expects adjusted EPS to reach around $3.85 in 2024, driven by strong operational performance and a lower share count [18][24] Other Important Information - Otis achieved ISO 50001 certification for its manufacturing hub in Korea, expanding its commitment to energy management [5] - The company plans to return $1 billion to shareholders through share repurchases and dividends in 2024 [19] Q&A Session All Questions and Answers Question: Can you elaborate on the fundamentals in China and pricing pressures? - Management acknowledged that the New Equipment market in China remains weak, with a significant revenue decline, but emphasized that pricing remains competitive rather than irrational [32][33] Question: What is the outlook for Service margins? - Service margins are performing in line with expectations, with a slight increase due to good volume flow and pricing improvements [36] Question: How do mod margins in China compare to the rest of the world? - Management indicated that mod margins in China are attractive and expected to grow rapidly, with early orders showing promise [40][41] Question: What is the long-term outlook for the New Equipment market in China? - Management suggested that while there is potential for the market to decline, they expect sequential growth improvement in 2025 compared to 2024 [44][51] Question: Can you provide insights on the Americas and EMEA growth? - Management reported strong performance in the Americas, with a significant increase in orders and a solid backlog, while EMEA is performing well despite market challenges [59][60]

Otis Worldwide Corporation (OTIS) reported dismal results in the third quarter of 2024, with adjusted earnings and net sales missing the Zacks Consensus Estimate. The company reported lower-than-expected earnings in the quarter after four consecutive quarters of earnings beat. The top and bottom lines increased on a year-over-year basis. See the Zacks Earnings Calendar to stay ahead of market-making news. The quarterly results reflect soft contributions from the company's New Equipment segment due to tepid ...

Otis Worldwide (OTIS) reported $3.55 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.7%. EPS of $0.96 for the same period compares to $0.95 a year ago.The reported revenue represents a surprise of -1.25% over the Zacks Consensus Estimate of $3.59 billion. With the consensus EPS estimate being $0.97, the EPS surprise was -1.03%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

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Otis Worldwide (OTIS) came out with quarterly earnings of $0.96 per share, missing the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.03%. A quarter ago, it was expected that this company would post earnings of $1.03 per share when it actually produced earnings of $1.06, delivering a surprise of 2.91%. Over the last four quarters, the company ...

Otis delivers continued strong Service performance with high single digit Service sales growth GAAP EPS up 47.3% and adjusted EPS up 1.1% Service net sales up 7.2% and Service organic sales up 7.7% Maintenance portfolio units increased 4.2% Mod orders up 3%, backlog up 14%, up 12% at constant currency GAAP cash flow from operations of $394 million; adjusted free cash flow of $381 million Share repurchases of $200 million YTD GAAP EPS up 24.2% and YTD adjusted EPS up 8.2%, share repurchases of $800 million U ...

Exhibit 99 Quarter Ended September 30, Nine Months Ended September 30, OTIS REPORTS THIRD QUARTER 2024 RESULTS Otis delivers continued strong Service performance with high single digit Service sales growth • GAAP EPS up 47.3% and adjusted EPS up 1.1% • Service net sales up 7.2% and Service organic sales up 7.7% • Maintenance portfolio units increased 4.2% • Mod orders up 3%, backlog up 14%, up 12% at constant currency • GAAP cash flow from operations of $394 million; adjusted free cash flow of $381 million ...

Wall Street analysts forecast that Otis Worldwide (OTIS) will report quarterly earnings of $0.97 per share in its upcoming release, pointing to a year-over-year increase of 2.1%. It is anticipated that revenues will amount to $3.59 billion, exhibiting an increase of 2% compared to the year-ago quarter. Over the last 30 days, there has been an upward revision of 0.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration o ...