United Technologies Boosts Full-Year Projections After Better-Than-Expected Second-Quarter Results

8:47 AM, Jul 23, 2019 — United Technologies (UTX) raised its outlook for the full year on Tuesday after reporting second-quarter results that came in ahead of Wall Street’s projections, with sales driven by a surge in aerospace systems.

The maker of Pratt & Whitney engines and Carrier air conditioners now sees adjusted 2019 earnings per share of $7.90 to $8.05, up from the prior projection of $7.80 to $8, it said in a statement.

The outlook for organic sales growth is now 4% to 5% from 3% to 5% seen previously. The outlook for sales was maintained at $75.5 billion to $77 billion, the Farmington, Conn.-based firm said.

“Based on a solid first half, we feel confident raising our outlook for the full year,” said Gregory Hayes, the company’s chief executive. “We remain on track to establish Otis and Carrier as independent companies in the first half of 2020.” Otis is the company’s elevator business segment.

Hayes said the merger announced with defense-sector heavyweight Raytheon (RTN) in June “will enhance our ability to provide high technology systems that meet the increasingly complex needs of our customers in rapidly growing segments of the industry.”

For the second quarter that ended on June 30, United Technologies’ sales rose to $19.6 billion from $16.7 billion a year earlier. That was just ahead of the consensus on Capital IQ for $19.58 billion. Adjusted earnings per share rose to $2.20 from $1.97, well ahead of the Street’s projection for $2.05 a share.

“We continued to see outperformance at Collins Aerospace this quarter as we made significant progress on the integration of Rockwell Collins, which more than offset softness in Carrier’s end markets,” said Hayes.

Net sales in the Collins Aerospace Systems division jumped to $6.58 billion from $3.96 billion in the same period of 2018. Pratt & Whitney sales rose to $5.15 billion from $4.74 billion, while Carrier fell to $4.96 billion from $5.04 billion a year ago. Sales in the Otis elevator segment were little changed year on year at $3.35 billion.

Companies: United Technologies Corporation
Price: 136.00 Price Change: +3.03 Percent Change: +2.28

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