United Technologies Corp. (NYSE: UTX) reported fourth-quarter and full-year 2016 results before markets opened Wednesday morning. For the quarter, the industrial conglomerate posted an adjusted diluted earnings per share (EPS) of $1.56 on revenues of $14.67 billion. In the same period a year ago, the company reported EPS of $1.53 per share on revenues of $14.3 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.56 and $14.7 billion in revenues.
For the full year, the company reported EPS of $6.61 and revenues of $57.24 billion, compared with 2015 EPS of $6.30 and revenues of $56.1 billion. Analysts had forecast EPS of $6.60 and revenues of $57.29 billion.
Excluded from the EPS calculation are $0.30 and $0.48 in restructuring and other significant charges for the quarter and the year, respectively.
The company affirmed previous 2017 guidance for 1% to 3% top-line growth and full-year sales of $57.5 billion to $59 billion. Full-year adjusted EPS guidance is $6.30 to $6.60.
Analysts estimate first-quarter EPS of $1.40 on revenues of $13.59 billion. For the full year, the consensus estimate calls for EPS of $6.56 on revenues of $58.86 billion.
CEO Greg Hayes said:
We remain confident in the 2017 expectations we laid out in December. Despite an uncertain global macro environment, our growing aerospace backlog and strategic investments in the commercial businesses position us well to generate higher organic growth in 2017, and we remain on track to our 2020 targets. UTC remains focused on innovation for growth, execution, structural cost reduction, and disciplined capital allocation.
Quarterly sales rose in all four of UTC’s segments, with operating profit in the company’s Pratt & Whitney segment rising from a net loss of $464 million in the fourth quarter of 2015 to a profit of $409 million. For the year, Pratt & Whitney’s operating profit rose from $861 million to $1.55 billion. On an adjusted basis, however, full-year operating profit at Pratt & Whitney fell from $1.91 billion to $1.75 billion and adjusted consolidated operating profit slipped from $9.13 billion to $9.01 billion.
In Wednesday’s premarket session, shares traded up about 1.5% to $113.24, in a 52-week range of $83.85 to $112.83. The 12-month consensus price target on the stock was $117.53 before this morning’s report.