Zacks Research Lowers Earnings Estimates for Otis Worldwide

Otis Worldwide Co. (NYSE:OTIS - Free Report) - Investment analysts at Zacks Research cut their Q2 2025 earnings per share estimates for shares of Otis Worldwide in a research note issued on Wednesday, May 14th. Zacks Research analyst S. Mukherjee now expects that the company will earn $1.02 per share for the quarter, down from their prior estimate of $1.05. The consensus estimate for Otis Worldwide's current full-year earnings is $4.04 per share. Zacks Research also issued estimates for Otis Worldwide's Q4 2025 earnings at $1.05 EPS, Q1 2026 earnings at $1.03 EPS, Q2 2026 earnings at $1.07 EPS and Q1 2027 earnings at $1.11 EPS.

Otis Worldwide (NYSE:OTIS - Get Free Report) last announced its quarterly earnings data on Wednesday, April 23rd. The company reported $0.92 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.91 by $0.01. Otis Worldwide had a net margin of 11.53% and a negative return on equity of 31.76%. The business had revenue of $3.35 billion for the quarter, compared to analysts' expectations of $3.41 billion. During the same period last year, the firm posted $0.88 earnings per share. The firm's quarterly revenue was down 2.5% compared to the same quarter last year.

Several other analysts also recently weighed in on the company. Royal Bank of Canada dropped their price objective on Otis Worldwide from $109.00 to $105.00 and set an "outperform" rating for the company in a research report on Monday, April 28th. Wells Fargo & Company dropped their target price on shares of Otis Worldwide from $105.00 to $95.00 and set an "equal weight" rating for the company in a report on Thursday, April 24th. Barclays decreased their price target on shares of Otis Worldwide from $92.00 to $90.00 and set an "underweight" rating on the stock in a report on Friday, April 25th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Otis Worldwide from $105.00 to $88.00 and set a "neutral" rating for the company in a research note on Tuesday, April 8th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $98.86.

Otis Worldwide Stock Performance

Shares of OTIS stock opened at $96.18 on Thursday. Otis Worldwide has a fifty-two week low of $89.70 and a fifty-two week high of $106.83. The stock's fifty day moving average price is $98.18 and its two-hundred day moving average price is $97.65. The company has a market cap of $37.96 billion, a PE ratio of 23.69 and a beta of 1.01.

Institutional Investors Weigh In On Otis Worldwide

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in Otis Worldwide by 3.5% in the first quarter. Vanguard Group Inc. now owns 46,595,293 shares of the company's stock valued at $4,808,634,000 after acquiring an additional 1,591,450 shares during the last quarter. JPMorgan Chase & Co. lifted its position in shares of Otis Worldwide by 6.7% in the 1st quarter. JPMorgan Chase & Co. now owns 37,920,025 shares of the company's stock worth $3,913,347,000 after purchasing an additional 2,396,134 shares during the period. Geode Capital Management LLC boosted its stake in shares of Otis Worldwide by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 11,126,735 shares of the company's stock valued at $1,031,787,000 after purchasing an additional 95,035 shares during the last quarter. Franklin Resources Inc. increased its position in shares of Otis Worldwide by 5.9% during the fourth quarter. Franklin Resources Inc. now owns 7,785,116 shares of the company's stock worth $720,980,000 after buying an additional 435,372 shares during the period. Finally, Norges Bank acquired a new stake in shares of Otis Worldwide during the fourth quarter worth $649,883,000. Institutional investors and hedge funds own 88.03% of the company's stock.

Insider Buying and Selling

In other Otis Worldwide news, insider Montlivault Stephane De sold 6,660 shares of Otis Worldwide stock in a transaction dated Monday, March 10th. The stock was sold at an average price of $105.30, for a total transaction of $701,298.00. Following the transaction, the insider now directly owns 63,931 shares of the company's stock, valued at approximately $6,731,934.30. The trade was a 9.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.23% of the stock is owned by corporate insiders.

Otis Worldwide Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 16th will be given a dividend of $0.42 per share. The ex-dividend date is Friday, May 16th. This is an increase from Otis Worldwide's previous quarterly dividend of $0.39. This represents a $1.68 annualized dividend and a yield of 1.75%. Otis Worldwide's dividend payout ratio (DPR) is currently 44.09%.

Otis Worldwide announced that its Board of Directors has approved a share buyback plan on Thursday, January 16th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to buy up to 5.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

About Otis Worldwide

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects.

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