Published on 24 Apr 2024 on Zacks via Yahoo Finance

OTIS Q1 Earnings Beat, Organic Sales Up, '24 View Raised

Otis Worldwide Corporation OTIS reported mixed results in first-quarter 2024, wherein its earnings surpassed the Zacks Consensus Estimate but net sales missed the same. The top and bottom lines grew on a year-over-year basis.Its quarterly results reflected 14 consecutive quarters of organic sales growth and the results were marked by a high-teens growth in adjusted earnings per share (EPS). Thanks to the strength in modernization, the company witnessed orders growth of more than 10%, leading to mid-teens backlog growth.Otis has been leveraging its Service-driven business model and intends to focus on enhancing its operational performance and shareholder value through a capital-allocation strategy and pursue additional progress toward ESG goals.Abiding by its commitment to enhance shareholder value on the back of its accretive strategies, Otis announced a 14.7% hike in its quarterly dividend payment to 39 cents per share. The dividend will be paid on Jun 7, 2024, to shareholders as of May 17, 2024.Shares of this elevator and escalator manufacturing company inched up 0.3% in the pre-market trading session on Apr 24.

Inside the Headlines

The company reported quarterly earnings of 88 cents per share, surpassing the Zacks Consensus Estimate of 87 cents by 1.1% and increasing 10% from the year-ago quarter’s figure of 80 cents. The upside was mainly driven by operational improvement, a lower share count and effective tax rate improvement.