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NEW YORK - Otis Worldwide Corporation (NYSE:OTIS) reported fourth quarter earnings that fell short of analyst expectations, while providing a weaker-than-expected outlook for 2025, sending shares down 2.20% in early trading Wednesday.
The elevator and escalator manufacturer posted adjusted earnings per share of $0.93 for Q4, missing the consensus estimate of $0.95. Revenue came in slightly above expectations at $3.68 billion compared to analyst projections of $3.67 billion.
For the full year 2024, Otis reported net sales of $14.3 billion, up 0.4% YoY, with organic sales growth of 1.4%. Adjusted EPS for 2024 increased 8.2% to $3.83.
Looking ahead, the company provided a disappointing outlook for fiscal 2025. Otis expects full-year EPS of $4.00 to $4.10, below the $4.12 consensus estimate. The revenue forecast of $14.1 billion to $14.4 billion also fell short of analysts’ expectations of $14.55 billion.
"Otis finished 2024 with solid fourth quarter results including high single digit adjusted EPS growth, our highest cash flow since spin, and modernization orders up 18%," said Chair, CEO & President Judy Marks.
The company’s New Equipment segment saw organic sales decline 6.8% in Q4, while Service segment organic sales grew 7.8%. Otis ended the year with its maintenance portfolio up 4.2% to approximately 2.4 million units.
Despite the earnings miss and soft guidance, Otis highlighted its strong cash flow generation, with adjusted free cash flow of $1.57 billion for the full year 2024. The company repurchased $1.0 billion of shares during the year.
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