Otis Worldwide Corp


SKU: OTIS-1 Category:


Otis had a decent quarter with growth in organic sales and expansion in margins though it failed to meet market expectations on the revenue front. The company witnessed solid new equipment booking, and it continues to build its maintenance portfolio. In the quarter, the net sales were down mainly because of the wide strengthening of the U.S. dollar. In spite of the challenging environment, Otis maintained investment in the R&D spending and business, and the rest of the strategic investments were flat. Driven by strong growth in India and South Korea, bookings were much more than double the volume of the last year. The pricing trends improved in all regions apart from China and this helped the company deliver an earnings beat. The service business of Otis grew sales and expanded margins. In America, the new equipment orders are quite strong. Among key updates, Otis will be supporting by offering digitally native solutions that are space-saving, such as its Compass 360 destination dispatching, SkyRise double-deck elevators, and Gen360 platform in Los Angeles. In the Greater Bay Area, South China, Otis is supporting various projects for fueling smart city development. We provide the stock of Otis Corp with a ‘Hold’ rating with a revision in the target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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