Otis beats profit and sales expectations, and provides an upbeat outlook
Otis Worldwide Corp. reported Monday a third-quarter profit and sales that beat expectations, and provided an upbeat full-year outlook. The elevator and escalator installation company's stock was still inactive in premarket trading. Net income fell to $266 million, or 61 cents a share, from $317 million, or 73 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to 69 cents from 55 cents, above the FactSet consensus of 56 cents. Sales declined 1.4% to $3.27 billion, but beat the FactSet consensus of $3.21 billion. Free cash flow fell 5.5% to $311 million, above the FactSet consensus of $189.6 million. For 2020, the company expects adjusted EPS of $2.42, compared with the FactSet consensus of $2.30, and sales to decline 3% to 4%, while current sales expectations of $12.52 billion implies a 4.6% drop. The stock has gained 9.2% over the past three months, while the S&P 500 has advance 7.8%.
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