United Technologies Corp. (NYSE: UTX) released its third-quarter financial results before the markets opened on Tuesday. The firm said that it had $2.21 in earnings per share (EPS) and $19.5 billion in revenue. Consensus estimates had called for $2.03 in EPS and $19.3 billion in revenue. In the same period of last year, it posted EPS of $1.93 on $16.51 billion in revenue.
First-quarter sales were up 18% over the prior year, including 5% organic sales growth. These results exceeded expectations, primarily due to better than expected Collins Aerospace and Otis results.
In terms of its segments, United Tech reported:
- Otis net sales increased 2.6% year over year to $3.07 billion.
- Carrier net sales decreased by 1.2% to $4.82 billion.
- Pratt & Whitney net sales increased 10.3% to $5.28 billion.
- Collins Aerospace Systems increased by 64.2% to $6.495 billion.
In the quarter, Collins Aerospace commercial aftermarket sales were up 78% and up 20% organically. Collins Aerospace commercial aftermarket sales were up 17% on a pro forma basis, including Rockwell Collins.
Looking ahead to the 2019 full year, UTC now expects to see EPS in the range of $8.05 to $8.15 and sales between $76.0 billion and $76.5 billion, including organic sales growth of 4% to 5%. Consensus estimates are calling for $8.03 in EPS and $76.97 billion in revenue for the year.
Gregory Hayes, UTC board chair and chief executive, commented:
United Technologies delivered another strong quarter with 5 percent organic sales growth, as well as margin expansion across all four businesses. Our strong performance through the first three quarters gives us confidence in the improved adjusted EPS range of $8.05 to $8.15 and free cash flow range of $5.3 to $5.7 billion for the year. Continued strength at Collins Aerospace, including the integration of Rockwell Collins, and a lower tax rate are expected to more than offset softness we are seeing at Carrier.
Shares of UTC traded up 1.4% to $140.30 just after the opening bell. Its 52-week range is $100.48 to $144.40, and the consensus price target is $155.47.