Yahoo Finance Otis Worldwide Corporation (NYSE:OTIS) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
Otis Worldwide Corporation (NYSE:OTIS) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to US$93.02 in the week after its latest quarterly results. It was a credible result overall, with revenues of US$3.4b and statutory earnings per share of US$0.86 both in line with analyst estimates, showing that Otis Worldwide is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Otis Worldwide
Taking into account the latest results, the current consensus from Otis Worldwide's 14 analysts is for revenues of US$14.7b in 2024. This would reflect a credible 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.6% to US$3.73. In the lead-up to this report, the analysts had been modelling revenues of US$14.7b and earnings per share (EPS) of US$3.79 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$98.77, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Otis Worldwide, with the most bullish analyst valuing it at US$119 and the most bearish at US$79.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Otis Worldwide's growth to accelerate, with the forecast 3.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.7% per annum over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 3.5% per year. Otis Worldwide is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$98.77, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Otis Worldwide analysts - going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Otis Worldwide (including 1 which is significant) .
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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.
