- Otis Worldwide Corp (NYSE:OTIS) reported fourth-quarter FY21 sales growth of 2.2% year-over-year to $3.569 billion, +2.8% on an organic basis, missing the consensus of $3.58 billion.
- New Equipment sales of $1.56 billion (+2% Y/Y), +1.2% organic. Organic sales were 11.9% in Asia, partially offset by a decline of 9.5% and 6.3% in the Americas and EMEA, respectively.
- Service sales of $2.01 billion (+2.3% Y/Y), a 4% increase in organic basis. Organic maintenance and repair sales increased 4.3%, and organic modernization sales increased 2.2%.
- Adjusted EPS improved to $0.72 from $0.66 in 4Q20, beating the consensus of $0.68.
- The operating income increased by 12.7% Y/Y to $496 million, and the margin expanded by 130 bps to 13.9%. The adjusted operating margin was flat at 14.6%.
- New Equipment orders were up by 7.3% Y/Y; backlog up 1% Y/Y and 3% constant currency.
- Otis generated cash from operating activities for FY21 was $1.75 billion, compared to $1.48 billion a year ago. Free cash flow was $1.59 billion. It held cash and equivalents of $3.5 billion as of December 31, 2021.
- FY22 Outlook: Otis expects net sales of $14.4 billion - $14.7 billion, up 1% - 3%, vs. a consensus of $14.75 billion, with organic sales up 2.5% - 4.5%. It expects organic New Equipment sales up 0.5% - 3%, with organic Service sales up 4% - 6%.
- The company expects adjusted operating profit of $2.24 billion - $2.3 billion; Adjusted EPS of $3.20 - $3.30, up 6% - 10% vs. consensus of $3.29.
- Price Action: OTIS shares traded higher by 1.82% at $84.28 on the last check Monday.
