Earnings Review and Free Research Report: United Technologies’ Revenue Grew 3%; EPS Jumped 9%

Research Desk Line-up: Rockwell Collins Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on United Technologies Corp. (NYSE: UTX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=UTX, following the Company’s posting of its second quarter fiscal 2017 earnings results on July 25, 2017. The maker of Otis Elevators, Pratt & Whitney engines and Carrier air conditioners outperformed top and bottom-line expectations and also raised its adjusted earnings and sales forecast for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected Rockwell Collins, Inc. (NYSE: COL) for due-diligence and potential coverage as the Company reported on July 28, 2017, its financial results for Q3 FY17. Register for a free membership today, and be among the early birds that get access to our report on Rockwell Collins when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on UTX; also brushing on COL. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=UTX

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Earnings Reviewed

For the quarter ended June 30, 2017, United Technologies reported sales of $15.28 billion, up 3% compared to sales of $14.87 billion in Q2 2016, driven by 3 points of organic growth and 1 point of net acquisition growth, partially offset by 1 point of adverse foreign exchange. The Company’s revenue numbers topped Wall Street’s expectations of $15.18 billion.

United Technologies reported Q2 2017 net income of $1.44 billion, or $1.80 per share, compared to net income of $1.38 billion, or $1.71 per share, in Q2 2016. The Company adjusted earnings per share totaled $1.85 for the reported quarter, up 2% on a y-o-y basis and came in ahead of analysts’ estimates of $1.78 per share.

Segment Results

During Q2 2017, United Technologies’ Otis segment sales were $3.13 billion compared with $3.10 in Q2 2016, up 1% on an organic basis. Excluding China, the segment’s organic sales grew 4% on a y-o-y basis. Otis’ operating profit totaled $544 million, down 6% on a y-o-y basis. The contribution from higher service volume and productivity was more than offset by continued pricing and mix pressure in China and strategic investments in service and E&D. The segment’s new equipment orders were flat in Q2 2017, with 6% growth in North America offset by a decline of 14% in Europe on tough compares. In China, Otis saw 3% orders growth, with unit orders up 7%.

United Technologies’ Climate, Controls & Security (CCS)’s sales totaled $4.71 billion in Q2 2017 compared with $4.46 billion in Q2 2016. The segment’s sales grew 7% on a constant currency basis in the reported quarter. CCS’ operating profit for Q2 2017 came in at $873 million from $872 million in Q2 2016.

Equipment orders at CCS remained strong in Q2 2017, up 11% organically after a 7% growth in Q1 2017, with orders growth across all major product lines. Transport refrigeration orders were up 38%, North America residential HVAC was up 16% and commercial refrigeration was up 9%. Commercial HVAC and Fire and Security products were up mid-single-digits. The Company noted that this was the best growth in CCS organic equipment orders since Q4 2014.

During Q2 2017, United Technologies’ Pratt & Whitney generated sales of $4.07 billion compared with $3.81 billion in Q2 2016, and up 6% on an organic basis, driven by 30% growth in the military engines business, which benefited from higher F-135 deliveries, aftermarket strength, and development revenues. Pratt & Whitney’s operating profit totaled $402 million in Q2 2017, up compared to operating profit of $386 million in Q2 2016.

United Technologies’ Aerospace Systems’ sales were recorded at $3.64 billion compared to $3.72 billion in Q2 2016. The segment’s operating profit came in at $579 million from $582 million in the prior year’s same quarter. Aerospace Systems’ Commercial OEM sales fell 8%, driven by declines in legacy program volume that more than offset growth on new programs in the reported quarter.

Cash Matters

During Q2 2017, United Technologies’ cash flow from operations was $2.1 billion, or 149% of net income attributable to common shareholders. The Company’s capital expenditures were $446 million in the reported quarter. United Technologies’ free cash flow of $1.7 billion in Q2 2017 and was 118% of net income attributable to common shareowners.

Outlook

For FY17, United Technologies is forecasting adjusted earnings in the range of $6.45 to $6.60 per share from the earlier expectations of $6.30 to $6.60. The Company is estimating sales of $58.5 billion to $59.5 billion in the fiscal year, up from the previous announcement of $57.5 billion to $59 billion. United Technologies noted that there is no change in the Company’s previously provided 2017 expectations for free cash flow, share repurchases, or the placeholder for acquisitions.

Stock Performance

On Monday, July 31, 2017, the stock closed the trading session at $118.57, marginally falling 0.25% from its previous closing price of $118.87. A total volume of 2.17 million shares have exchanged hands. United Technologies’ stock price surged 8.61% in the past six months and 10.14% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 8.16%. The stock is trading at a PE ratio of 18.15 and has a dividend yield of 2.36%. At Monday’s closing price, the stock’s net capitalization stands at $94.86 billion.

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