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FARMINGTON, Conn. - The Board of Directors of Otis Worldwide Corporation (NYSE: NYSE:OTIS), a global leader in elevator and escalator manufacturing and service, has declared a quarterly dividend of $0.39 per share on the company’s common stock. Shareholders on record as of February 14, 2025, will be eligible for the dividend payment scheduled for March 7, 2025. According to InvestingPro data, Otis has raised its dividend for 5 consecutive years, with the current yield at 1.65%. The stock is currently trading slightly above its Fair Value, based on comprehensive analysis available through InvestingPro’s research reports.
Otis, known for moving billions of people daily with its products, operates a vast service network maintaining approximately 2.4 million units worldwide. The company employs a workforce of 72,000, which includes 44,000 field professionals. With a market capitalization of $38.09 billion and annual revenue of $14.26 billion, Otis operates in over 200 countries and territories, emphasizing its commitment to providing high-quality service and products. InvestingPro identifies Otis as a prominent player in the Machinery industry, with 8 additional key insights available to subscribers.
The announcement of the dividend follows Otis’s standard practice of rewarding its shareholders and reflects the company’s financial health, which InvestingPro rates as "Good" based on comprehensive financial metrics. The stock has demonstrated low price volatility and maintains a P/E ratio of 23.16. However, Otis also issued a cautionary statement highlighting that forward-looking statements such as anticipated earnings, cash flow, and dividends involve risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially.
The company pointed out several factors that could influence future dividends, including economic conditions, market fluctuations, interest rates, foreign exchange rates, credit availability, demand in construction, health pandemics, natural disasters, and the financial stability of customers and suppliers. Otis also noted the potential impact of legal and regulatory changes, political conditions, and geopolitical conflicts.
This dividend declaration is a part of Otis’s financial strategy, but the company remains cautious about the variability of future dividends due to the numerous risks and uncertainties that could affect its operations and financial outcomes.
The information provided in this article is based on a press release statement from Otis Worldwide Corporation.
In other recent news, Otis Worldwide Corporation reported a shortfall in its fourth quarter earnings, missing analyst expectations and providing a weaker-than-expected outlook for 2025. The company posted adjusted earnings per share of $0.93 for Q4, falling short of the consensus estimate of $0.95. However, revenue slightly exceeded expectations, hitting $3.68 billion against projections of $3.67 billion. For the full year of 2024, Otis reported net sales of $14.3 billion, marking a 0.4% year-over-year increase, with organic sales growth of 1.4%.
In terms of future projections, Otis anticipates full-year EPS in the range of $4.00 to $4.10 for 2025, below the consensus estimate of $4.12. The company’s revenue forecast of $14.1 billion to $14.4 billion also falls short of analysts’ expectations of $14.55 billion. Despite these figures, Otis emphasized its strong cash flow generation, with an adjusted free cash flow of $1.57 billion for 2024.
Further details reveal that the company’s New Equipment segment saw a 6.8% decline in organic sales in Q4, while the Service segment’s organic sales grew by 7.8%. Otis ended the year with its maintenance portfolio up by 4.2% to approximately 2.4 million units. These are among the recent developments for Otis Worldwide Corporation.
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