United Technologies Corp Earnings: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component United Technologies Corporation (NYSE:UTX) reported its results for the fourth quarter. United Technologies provides high tech products and services to the building systems and aerospace industries worldwide.

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United Technologies Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for United Technologies Corporation rose to $1.32 billion ($1.47 per share) vs. $1.2 billion ($1.31 per share) in the same quarter a year earlier. This marks a rise of 10.5% from the year earlier quarter.

Revenue: Rose 0.7% to $14.97 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: UTX was about in line with expectations as the mean analyst estimate of $1.46 per share. Analysts were expecting revenue of $15.07 billion.

Quoting Management: “UTC closed a solid 2011 despite tough compares in the commercial aerospace aftermarket and shorter cycle Carrier businesses and significant research and development investment in the quarter,” said Louis Chenevert, UTC Chairman & Chief Executive Officer. “For the year, all business units grew organically and achieved double digit operating margins. This performance, together with the announcements to acquire Goodrich and Rolls-Royce’s share of the IAE joint venture, positions the company for future earnings growth.” Chenevert added, “As expected, cash generation was strong in both the quarter and full year.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 10.5% and in the second quarter, the figure rose 18.7%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the third quarter, by 4 cents in the second quarter, and by 7 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 8.7% to $14.8 billion in the third quarter. The figure rose 9.2% in the second quarter from the year earlier and climbed 10.8% in the first quarter from the year-ago quarter.

Margins rose in the third quarter after falling the quarter before. Gross margin rose 1.5 percentage points to 27.5% from the quarter earlier quarter. In the second quarter, the figure rose 1.7 percentage points to 27.3% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.29 a share to $1.26 over the last ninety days. At $5.48 per share, the average estimate for the fiscal year has risen over the past seven days from $5.47.

Competitors to Watch: Honeywell Intl. Inc. (NYSE:HON), General Electric Company (NYSE:GE), The Boeing Company (NYSE:BA), Goodrich Corporation (NYSE:GR), Northrop Grumman Corp. (NYSE:NOC), Triumph Group, Inc. (NYSE:TGI), Esterline Tech. Corp. (NYSE:ESL) and Textron Inc. (NYSE:TXT).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com