Otis Worldwide Corp (NYSE:OTIS) shares are trading lower Wednesday after the company reported financial results for the second quarter. Here’s a rundown of the report.
Q2 Earnings: Otis reported second-quarter revenue of $3.60 billion, missing analyst estimates of $3.71 billion, according to Benzinga Pro. The elevator and escalator supplier reported second-quarter adjusted earnings of $1.05, beating analyst estimates of $1.02.
Service revenue was up 6% year-over-year as organic revenue climbed 4% year-over-year. Otis said total revenue was flat on a year-over-year basis, driven primarily by a decrease in new equipment sales in China and the Americas. Modernization orders were up 22% year-over-year, while new equipment orders fell 1% year-over-year.
“Otis delivered solid performance led by the strength of our Service segment that continues our steady growth trajectory, and contributed mid-single digit organic sales growth and both year-over-year and sequential operating profit margin expansion,” said Judy Marks, chair, president and CEO of Otis.
Outlook: Otis lowered its fiscal 2025 revenue guidance from a range of $14.6 billion to $14.8 billion to a new range of $14.5 billion to $14.6 billion. Analysts are anticipating 2025 revenue of $14.62 billion, according to Benzinga Pro.
The company affirmed its 2025 adjusted earnings guidance of $4 to $4.10 per share versus estimates of $4.01 per share.
OTIS Price Action: Otis shares were down 6.15% at $94.78 at the time of publication Wednesday, according to Benzinga Pro.
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