Categories Analysis, Industrials, Markets

United Technologies reports Q4 EPS of $1.95 vs. expected $1.51

Aircraft manufacturing company United Technologies (UTX) on Wednesday reported better-than-expected fourth quarter results, helped by its cost optimization measures as well as the decision to split the company into three different firms. Net sales rose 15% to $18 billion, higher than analysts’ projection of $16.59 billion.

United technologies fourth quarter results
Image courtesy: United Technologies

Earnings for the quarter rose to 83 cents per share from 50 cents per share a year ago. On an adjusted basis, earnings jumped 22% to $1.95 per share, surpassing the street consensus of $1.51 per share.

UTX shares jumped 2.6% during pre-market trading on Wednesday. The stock has declined 18% so far this year.

Earnings were primarily driven by the Carrier segment, where profit margin improved to 15% from 13.3% a year ago. Overall profit magin during the quarter was pegged at 11.3%.

United Technologies also posted its expectations for the current fiscal year. At the end of fiscal 2019, the company expects adjusted EPS in the range of $7.70 to $8.00 on net sales between $75.5 billion and $77.0 billion.

Chief Executive Officer Gregory Hayes said, “Looking to 2019, our segment profit is expected to grow faster than sales, and free cash flow, excluding separation costs, is expected to grow faster than earnings.”

United Technologies posts upbeat Q3 results, lifts 2018 profit view

Following the completion of Rockwell Collins acquisition in November,  the company had announced its decision to split itself into three different companies – United Technologies, Otis and Carrier. Carrier is the new name of the Climate, Controls & Security (CCS) division, which will be spun-off along with the Otis elevators business.

This move comes as part of United’s decision to focus on its aerospace business in order to improve operations. After the spin-off, United Technologies will comprise of Collins Aerospace Systems and Pratt & Whitney.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “United Technologies reports Q4 EPS of $1.95 vs. expected $1.51

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top