Industrial conglomerate United Technologies Corp. (NYSE: UTX) reported higher earnings and revenues for the second quarter of 2019, which also came in above Wall Street’s estimates. The company revised up its full-year guidance, driving the stock higher Tuesday morning.
In the second quarter, adjusted earnings moved up 12% year-over-year to $2.20 per share, exceeding analysts’ estimates. Reported profit, meanwhile, dropped to $1.9 billion or $2.20 per share from $2.05 billion or $2.56 per share in the second quarter of 2018. In the year-ago quarter, the bottom-line had benefitted from gains related to the Taylor divestiture.
Total sales increased 18% annually to $19.63 billion during the three-month period, with strong contributions from the recently acquired Rockwell Collins. Organic sales were up 6%. The top-line also surpassed the market’s expectations.
Total sales rose 18% annually, with strong contributions from the recently acquired Rockwell Collins
“Looking ahead, we remain on track to establish Otis and Carrier as independent companies in the first half of 2020. We are also excited about the transformational merger with Raytheon that we announced in June, which will create a leading, platform-agnostic aerospace and defense systems company,” said CEO Gregory Hayes.
Encouraged by the positive results, the management revised up its full-year 2019 organic sales growth guidance to 4-5% and adjusted earnings forecast to the range of $7.90 per share to $8.05 per share. The previous outlook for earnings was $7.80 per share to $8.00 per share, and that of organic sales growth was 3-5%.
The revision mainly reflects the solid contributions from Collins Aerospace as its integration progresses as planned. Meanwhile, the full-year sales guidance was reaffirmed in the range of $75.5 billion to $77.0 billion. The company continued to expect free cash flow between $4.5 billion and $5.0 billion, including $1.5 billion of one-time cash payments related to the portfolio separation.
United Technologies stock gained 23% since the beginning of the year and is currently trading at the levels seen a year ago. The shares closed the last trading session higher.
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