Latest news with #OtisWorldwide
Yahoo
24-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Otis Worldwide Corporation (OTIS)?
We recently published a list of In this article, we are going to take a look at where Otis Worldwide Corporation (NYSE:OTIS) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 15, Mad Money's Jim Cramer discussed how certain spin-offs quietly outperformed, praising Otis Worldwide Corporation (NYSE:OTIS) for thriving as a service-heavy elevator company even amid macroeconomic softness. 'Otis Worldwide's up 121% since the breakup — thank you, Judy Marks — gives you 134% total return including dividends. The elevator business is now worth nearly $40 billion all on its own. Look, a lot of people think of Otis as a traditional movement play — cyclical, hostage to new construction — but in reality the company gets the vast bulk of its money from servicing and repairing existing elevators, which is why even though China's soft, you still got to repair them.' A technician in a safety harness inspecting a passenger elevator in a modern office building. Despite Cramer's praise, this one barely moved, up just 2.41%, making his enthusiasm feel a bit overstated. Otis Worldwide Corporation (NYSE:OTIS) continues to benefit from its global elevator servicing operations which provide resilient, recurring revenue. Overall, OTIS ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of OTIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OTIS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Otis Worldwide (NYSE:OTIS) Unveils Futuristic Double-Deck Glass Elevators At Seattle's Space Needle
Otis Worldwide showcased its commitment to innovation with the launch of its new double-deck glass elevator system at the Space Needle. These enhancements underscore the company's historical ties and technological advancements. However, despite this significant announcement, the company's shares remained flat over the last week, reflecting broader market trends. Market volatility driven by revived trade tensions, alongside a 1.4% market decline, influenced stock movements across sectors. The broader decline in tech stocks influenced market sentiment, overshadowing individual company developments such as Otis' innovative expansion. We've discovered 2 possible red flags for Otis Worldwide that you should be aware of before investing here. This technology could replace computers: discover the 22 stocks are working to make quantum computing a reality. The recent unveiling of Otis Worldwide's innovative double-deck glass elevator system at the Space Needle could reinforce the company's focus on modernization and service-driven growth strategies. While this announcement didn't significantly impact the share price in the short term, it aligns with Otis's broader initiatives aimed at enhancing revenue through modernization and service renewals, particularly amid regional volatility in new equipment sales. The company's strategic emphasis suggests potential improvement in operating margins, assuming initiatives like UpLift and the China transformation continue to drive efficiency. Over the past five years, Otis shares achieved a total return of 104.92%, underscoring steady growth for investors compared to the relatively flat performance observed over the recent week. In a more compressed timeframe, Otis's stock underperformed both the US market, which saw a 9.1% rise, and the US Machinery industry, with a 1.9% increase, over the past year. This reflects the broader market challenges impacting tech stocks and suggests potential margin pressures or regional sales challenges. The company's latest innovations may positively influence revenue and earnings forecasts, with an expected annual revenue growth of 4.4% and earnings growth of 8.7%. However, challenges in the Chinese market and tariff implications could temper this growth. With the current share price at US$96.19 and an analyst consensus target of US$100.57, the stock is trading at a slight discount. The small discrepancy between the current price and the price target suggests analysts find the stock to be close to its fair value, factoring in expected future earnings and potential growth obstacles. Assess Otis Worldwide's future earnings estimates with our detailed growth reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:OTIS. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Why Otis Worldwide's (NYSE:OTIS) Earnings Are Better Than They Seem
The stock was sluggish on the back of Otis Worldwide Corporation's (NYSE:OTIS) recent earnings report. Along with the solid headline numbers, we think that investors have some reasons for optimism. We've discovered 3 warning signs about Otis Worldwide. View them for free. Importantly, our data indicates that Otis Worldwide's profit was reduced by US$281m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Otis Worldwide to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from Otis Worldwide's earnings over the last year, but we might see an improvement next year. Because of this, we think Otis Worldwide's earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 31% annually, over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing Otis Worldwide at this point in time. Every company has risks, and we've spotted 3 warning signs for Otis Worldwide (of which 2 are a bit unpleasant!) you should know about. Today we've zoomed in on a single data point to better understand the nature of Otis Worldwide's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Otis Worldwide's (NYSE:OTIS) Dividend Will Be Increased To $0.42
Otis Worldwide Corporation (NYSE:OTIS) will increase its dividend on the 6th of June to $0.42, which is 7.7% higher than last year's payment from the same period of $0.39. This takes the annual payment to 1.7% of the current stock price, which is about average for the industry. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Solid dividend yields are great, but they only really help us if the payment is sustainable. Prior to this announcement, Otis Worldwide's dividend was comfortably covered by both cash flow and earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. Over the next year, EPS is forecast to expand by 33.8%. Assuming the dividend continues along recent trends, we think the payout ratio could be 37% by next year, which is in a pretty sustainable range. View our latest analysis for Otis Worldwide The dividend's track record has been pretty solid, but with only 5 years of history we want to see a few more years of history before making any solid conclusions. The dividend has gone from an annual total of $0.80 in 2020 to the most recent total annual payment of $1.56. This means that it has been growing its distributions at 14% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted. Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. We are encouraged to see that Otis Worldwide has grown earnings per share at 11% per year over the past five years. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. To that end, Otis Worldwide has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
25-04-2025
- Business
- Yahoo
Otis Worldwide First Quarter 2025 Earnings: Misses Expectations
Revenue: US$3.35b (down 2.5% from 1Q 2024). Net income: US$243.0m (down 31% from 1Q 2024). Profit margin: 7.3% (down from 10% in 1Q 2024). EPS: US$0.61 (down from US$0.87 in 1Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 22%. Looking ahead, revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Machinery industry in the US. Performance of the American Machinery industry. The company's shares are down 5.9% from a week ago. We should say that we've discovered 3 warning signs for Otis Worldwide (2 shouldn't be ignored!) that you should be aware of before investing here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
