Otis Worldwide Corp. (OTIS, Financial) reported its first-quarter revenue at $3.35 billion, falling short of analysts' expectations of $3.42 billion. Despite the revenue miss, the company highlighted strong performance in its Service segment, which achieved mid-single digit organic sales growth and expanded its operating profit margin by 40 basis points.
The company's strategy to modernize operations bore fruit, with new orders increasing by 12%, which contributed to mid-teens growth in their backlog. This positions Otis favorably for the remainder of the fiscal year. The company also saw a 4% growth in its maintenance portfolio, reinforcing its leadership in the industry.
Underlining confidence in its ongoing strategies and a dedication to shareholder value, Otis announced an increase in its dividend for the fifth year in a row, reflecting a commitment to enhancing returns for investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Otis Worldwide Corp (OTIS, Financial) is $98.96 with a high estimate of $109.00 and a low estimate of $90.00. The average target implies an upside of 0.01% from the current price of $98.95. More detailed estimate data can be found on the Otis Worldwide Corp (OTIS) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Otis Worldwide Corp's (OTIS, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Otis Worldwide Corp (OTIS, Financial) in one year is $95.47, suggesting a downside of 3.52% from the current price of $98.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Otis Worldwide Corp (OTIS) Summary page.
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