What to Expect When United Technologies Releases Q3 Results
United Technologies is scheduled to report its most recent quarterly results before the opening bell on Tuesday.
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United Technologies Corp. (NYSE: UTX) is scheduled to report its most recent quarterly results before the opening bell on Tuesday. The consensus estimates are $2.03 in earnings per share (EPS) and $19.3 billion in revenue. In the third quarter of last year, the conglomerate said it had $1.93 in EPS and $16.51 billion in revenue.
In the second quarter, the company’s acquisition of Rockwell Collins added 13 percentage points to the company’s 18% year-over-year revenue gain. Another six points of growth was organic, and both were offset by a one-point foreign exchange headwind.
At the same time, Collins Aerospace commercial aftermarket (parts) sales jumped 75% and 18% organically. The segment’s profit margin rose year over year from 14.4% to 17.8%, and operating profit more than doubled from $569 million to $1.17 billion.
Also, the Pratt & Whitney jet engine segment posted sales of $5.15 billion, up 8.7% compared with $4.74 billion in the year-ago quarter, and operating profit was up 6.8% to $424 million on a profit margin of 8.2%.
As for United Technologies on a longer-term scale, the company’s pending merger with Raytheon Co. (NYSE: RTN) is also likely to move Raytheon shares in tandem. The merger is set as a merger of equals, but it is complicated as there is also set to be a separation of Otis (elevators) and Carrier (air conditioning) that will make the company more of a pure-play in defense and aerospace rather than a complicated conglomerate.
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Excluding Monday’s move, United Tech had outperformed the broad markets, with its stock up about 28.5% year to date. However, in the past 52 weeks, the stock was up only 5%.
A few analysts weighed in on the stock ahead of the results:
- JPMorgan has an Overweight rating and a $155 price target.
- Credit Suisse has an Outperform rating with a $164 price target.
- Wolfe Research’s Buy rating comes with a $152 target price.
- Sanford Bernstein rates it as Market Perform with a $154 target.
- Cowen has a Buy rating with a $150 target price.
- William Blair has a Hold rating.
Shares of United Tech traded up about 1% at $138.39 on Monday, in a 52-week range of $100.48 to $144.40. The consensus price target is $155.47.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
