Otis entered the year with good momentum and delivered an all-around beat with improved organic growth in its last result as it continues to execute its four strategic pillars – advancing digitization, accelerating service portfolio growth, and sustaining new equipment growth while focusing on and empowering the organization. Strong service performance, particularly on price and volume, was partially offset by commodities in new equipment, mixed headwinds, and higher corporate costs. The company continues to perform quite well in new equipment orders. Lately, Otis received a contract to deliver Battersea station specialty escalators that have been particularly designed for running for around 20 hours every day. China is on the recovery path with improvement in the New Equipment sales in the region. Otis continued to roll its digitally-connected elevator platforms, expanding the deployment of Gen360 in Europe to Slovakia, Portugal, Poland, and the Czech Republic and launching Gen 3 in India. The service sales force of the company performed quite well. The pricing on new equipment orders in the quarter rose, led by the Americas, with a solid performance in APAC and EMEA. Operating profits were a bit flat for the quarter. We give Otis a ‘Hold’ rating with a revised 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
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