Results: Otis Worldwide Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Yahoo

07-02-2025

Otis Worldwide Corporation (NYSE:OTIS) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Otis Worldwide reported US$14b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.07 beat expectations, being 5.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Otis Worldwide
Following last week's earnings report, Otis Worldwide's 13 analysts are forecasting 2025 revenues to be US$14.5b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 5.7% to US$3.91 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$14.5b and earnings per share (EPS) of US$4.08 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$99.47, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Otis Worldwide, with the most bullish analyst valuing it at US$117 and the most bearish at US$79.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 1.9% growth on an annualised basis. That is in line with its 2.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.2% per year. So it's pretty clear that Otis Worldwide is expected to grow slower than similar companies in the same industry.
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Otis Worldwide. Long-term earnings power is much more important than next year's profits. We have forecasts for Otis Worldwide going out to 2027, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 3 warning signs for Otis Worldwide (2 are concerning!) that you should be aware of.
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