Otis stock turns lower after profit rises above expectations, while sales comes up a bit shy

Shares of Otis Worldwide Corp. turned down 4.2% in premarket trading Monday, erasing earlier slight gains, after the elevator and escalator maker reported fourth-quarter profit that topped expectations but sales that came up a bit shy, and provided a full-year sales outlook that was below forecasts. Net income rose to $281 million, or 65 cents a share, from $251 million, or 58 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share increased to 72 cents from 66 cents and topped the FactSet consensus of 69 cents. Sales grew 2.2% to $3.57 billion, just below the FactSet consensus of $3.59 billion, as service sales rose 2.3% to $2.01 billion and new equipment sales increased 2.0% to $1.56 billion. Cost of goods sold rose 2.0% to $3.08 billion. For 2022, the company expects adjusted EPS of $3.20 to $3.30, surrounding the FactSet consensus of $3.28, and sales of $14.4 billion to $14.7 billion, or below expectations of $14.76 billion. Otis’ stock has gained 3.1% over the past three months through Friday while the S&P 500 has lost 3.8%.

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