United Technologies Beats Q3 Earnings, Revises Outlook
United Technologies Corporation UTX provides high-end technology products and services to the building systems and aerospace industries worldwide. It has a diversified business mix and wide geographical presence to mitigate operating risk. The business mix and diversification allows the company to remain profitable even during tough economic times, delivering consistent earnings and dividend growth.
The company is susceptible to high operating risks following the Brexit referendum, as it has a huge operating exposure in the U.K. Fluctuations in foreign currency exchange rates and macroeconomic turbulences also affect the stability of the company’s cash flows. This limits the visibility regarding the company’s future performance. With the extent of competition increasing over time, investors have been eagerly awaiting the company’s latest earnings report.
UTX has an outstanding earnings track record, and has delivered an average positive earnings surprise of 6.5% in the last four trailing quarters, beating estimates all through.
UTD TECHS CORP Price and EPS Surprise
UTD TECHS CORP Price and EPS Surprise | UTD TECHS CORP Quote
Currently, UTX has a Zacks Rank #4 (Sell), but that could change following its third-quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: UTX beats on earnings. The Zacks Consensus Estimate called for EPS of $1.68, and the company reported adjusted EPS of $1.76.
Revenue: Revenues missed. UTX posted net sales of $14,354 million, slightly lagging the Zacks Consensus Estimate of $14,400 million.
Key Stats to Note: UTX remains on track with its growth targets for 2020. Incorporating the improved expectations for organic sales growth in the near future, UTX has revised its earlier adjusted earnings guidance for 2016 to $6.55 to $6.60 per share (up from $6.45 to $6.60), on sales of $57 to $58 billion.
Stock Price: UTX’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back our full write up on this UTX earnings report later!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UTD TECHS CORP (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
