Earnings Beat: Otis Worldwide Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Otis Worldwide Corporation (NYSE:OTIS) recently reported its quarterly numbers. The result was positive overall - although revenues of US$3.7b were in line with what the analysts predicted, Otis Worldwide surprised by delivering a statutory profit of US$0.95 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Otis Worldwide from 13 analysts is for revenues of US$15.2b in 2026. If met, it would imply a reasonable 6.4% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 27% to US$4.40. Before this earnings report, the analysts had been forecasting revenues of US$15.2b and earnings per share (EPS) of US$4.39 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Otis Worldwide

The analysts reconfirmed their price target of US$102, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Otis Worldwide analyst has a price target of US$112 per share, while the most pessimistic values it at US$92.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Otis Worldwide's rate of growth is expected to accelerate meaningfully, with the forecast 5.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.5% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Otis Worldwide is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Otis Worldwide analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Otis Worldwide you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.