Overview

• Otis Q3 net sales up 4% to $3.7 bln, beating analyst expectations

• Adjusted EPS for Q3 rises 9%, beating consensus

• GAAP EPS down 29% due to prior year's non-recurring tax benefits

Outlook

• Otis raises midpoint of 2025 EPS outlook due to strong Service performance

• Company highlights strong order book for modernization and recovery in New Equipment

Result Drivers

• SERVICE SALES GROWTH - Service net sales increased 9% with organic sales up 6%, driven by maintenance and repair sales growth

• MODERNIZATION ORDERS - Modernization orders increased 27% at constant currency, contributing to organic modernization sales growth of 14%

• OPERATING PROFIT MARGIN EXPANSION - Service segment operating profit margin increased by 70 bps due to higher volume, favorable pricing, and productivity

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the heavy electrical equipment peer group is "buy."

• Wall Street's median 12-month price target for Otis Worldwide Corp is $100.00, about 8.7% above its October 28 closing price of $91.30

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)