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.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
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.
Read full Disclosure
