Latest news with #OtisWorldwideCorporation
Yahoo
13-05-2025
- Business
- Yahoo
Otis Worldwide Corporation (OTIS) Surged Due to Its Low Exposure to Tariff
The London Company, an investment management company, released 'The London Company Mid Cap Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. After two years of robust earnings, US equities entered a correction territory in Q1. The portfolio declined 4.3% (-4.5%, net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Sector exposure was a headwind to the strategy's relative performance in the quarter. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, The London Company Mid Cap Strategy highlighted stocks such as Otis Worldwide Corporation (NYSE:OTIS). Otis Worldwide Corporation (NYSE:OTIS) engages in the manufacturing, installation, and servicing of elevators and escalators. The one-month return of Otis Worldwide Corporation (NYSE:OTIS) was -1.26%, and its shares gained 0.49% of their value over the last 52 weeks. On May 12, 2025, Otis Worldwide Corporation (NYSE:OTIS) stock closed at $98.00 per share with a market capitalization of $38.509 billion. The London Company Mid Cap Strategy stated the following regarding Otis Worldwide Corporation (NYSE:OTIS) in its Q1 2025 investor letter: "Otis Worldwide Corporation (NYSE:OTIS) - Despite tough 4Q24 earnings, OTIS shares rallied in the first quarter due to its low exposure to tariffs/global trade war risks. Our conviction in the stock reflects the company's strong execution in the China market despite macro headwinds and the oligopolistic nature of the elevator and escalator industry." A technician in a safety harness inspecting a passenger elevator in a modern office building. Otis Worldwide Corporation (NYSE:OTIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Otis Worldwide Corporation (NYSE:OTIS) at the end of the fourth quarter which was 32 in the previous quarter. Otis Worldwide Corporation (NYSE:OTIS) reported revenue of $3.3 billion in Q1 2025 with organic sales flat year over year. While we acknowledge the potential of Otis Worldwide Corporation (NYSE:OTIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Otis Worldwide Corporation (NYSE:OTIS) and shared the list of top trending stocks. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
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
24-04-2025
- Business
- Yahoo
Why Otis Worldwide Corporation (OTIS) Lagged Performance on Wednesday
We recently published an article titled . In this article, we are going to take a look at where Otis Worldwide Corporation (NYSE:OTIS) stands against the other stocks. Wall Street's major indices finished in the green territory anew on Wednesday as worries about tariff policies and the Federal Reserve's independence tapered off following President Donald Trump's assurance that he had no intentions of ousting Jerome Powell. The Nasdaq surged by 2.5 percent, the S&P 500 rose by 1.67 percent, while the Dow Jones increased by 1.07 percent. Ten companies, on the other hand, led the highest declines, booking modest losses during the trading session. In this article, we have identified Wednesday's 10 worst-performing stocks and detailed the reasons behind their lagging performance. To come up with the list, we considered only the stocks with more than $2 billion in market capitalization and $5 million in trading volume. A technician in a safety harness inspecting a passenger elevator in a modern office building. Otis Worldwide Corporation (NYSE:OTIS) dropped its share prices by 6.72 percent on Wednesday to end at $92.30 apiece as investors sold off positions following the company's dismal earnings performance in the first quarter of the year. In a statement, Otis Worldwide Corporation (NYSE:OTIS) said net income fell by 31 percent to $243 million from $353 million in the same period a year earlier, while net sales dipped by 3 percent to $3.35 billion from $3.437 billion year-on-year, primarily due to new equipment in China. In the same announcement, Otis Worldwide Corporation (NYSE:OTIS) also revised its full-year 2025 outlook, with net sales now expected to increase by 3 to 4 percent to a range of $14.6 billion to $14.8 billion year-on-year. Otis Worldwide Corporation (NYSE:OTIS) is one of the leading manufacturers of elevators and escalators, with 2.4 million customer units worldwide. Overall OTIS ranks 5th on our list of the worst performing stocks on Wednesday. While we acknowledge the potential of OTIS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OTIS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
Results: Otis Worldwide Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts
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. 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.
