Otis Worldwide (NYSE:OTIS) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Otis Worldwide (NYSE:OTIS) posted its earnings results on Wednesday. The company reported $0.93 earnings per share for the quarter, missing the consensus estimate of $0.95 by ($0.02), Zacks reports. Otis Worldwide had a negative return on equity of 31.28% and a net margin of 11.48%. Otis Worldwide updated its FY 2025 guidance to 4.000-4.100 EPS.

Otis Worldwide Stock Performance

NYSE:OTIS opened at $94.75 on Thursday. The stock has a market capitalization of $37.85 billion, a price-to-earnings ratio of 23.63 and a beta of 1.06. Otis Worldwide has a 1 year low of $87.57 and a 1 year high of $106.33. The stock has a fifty day moving average price of $96.12 and a two-hundred day moving average price of $97.19.

Insider Transactions at Otis Worldwide

In related news, EVP Abbe Luersman sold 9,000 shares of Otis Worldwide stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $101.02, for a total transaction of $909,180.00. Following the completion of the transaction, the executive vice president now directly owns 9,992 shares of the company’s stock, valued at approximately $1,009,391.84. The trade was a 47.39 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 0.23% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. JPMorgan Chase & Co. cut their target price on Otis Worldwide from $112.00 to $108.00 and set a “neutral” rating on the stock in a research report on Wednesday, January 15th. Wells Fargo & Company reduced their target price on shares of Otis Worldwide from $105.00 to $100.00 and set an “equal weight” rating for the company in a report on Tuesday, January 7th. Barclays reduced their price objective on Otis Worldwide from $94.00 to $91.00 and set an “underweight” rating for the company in a research note on Wednesday, January 8th. UBS Group initiated coverage on Otis Worldwide in a report on Wednesday, November 13th. They issued a “neutral” rating and a $113.00 target price on the stock. Finally, Wolfe Research downgraded Otis Worldwide from a “peer perform” rating to an “underperform” rating and set a $104.00 price target for the company. in a report on Thursday, December 12th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating to the stock. According to MarketBeat, Otis Worldwide currently has a consensus rating of “Hold” and a consensus target price of $103.88.

Otis Worldwide declared that its Board of Directors has authorized a share buyback program on Thursday, January 16th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to buy up to 5.4% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

About Otis Worldwide

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects.