United Technologies Earnings Cheat Sheet: Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component United Technologies Corporation (NYSE:UTX) reported its results for the third 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 Third Quarter

Results: Net income for the conglomerate rose to $1.32 billion ($1.47 per share) vs. $1.2 billion ($1.30 per share) in the same quarter a year earlier. This marks a rise of 10.5% from the year earlier quarter.

Revenue: Rose 8.7% to $14.8 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: UTX beat the mean analyst estimate of $1.44 per share. Analysts were expecting revenue of $14.55 billion.

Quoting Management: “This was another solid quarter for UTC, with continued organic sales growth across all six of our businesses,” said Louis Chenevert, UTC Chairman & Chief Executive Officer. “Cash generation was also strong and we now expect cash flow from operations less capital expenditures to exceed net income attributable to common shareowners for the full year.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 18.7% and in the first quarter, the figure rose 16.9%.

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

Gross margin shrank 1.7 percentage points to 27.3%. The contraction appeared to be driven by increased costs, which rose 11.3% from the year earlier quarter while revenue rose 8.7%.

Revenue has risen the past four quarters. Revenue increased 9.2% to $15.08 billion in the second quarter. The figure rose 10.8% in the first quarter from the year earlier and climbed 6.3% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.47 a share to $1.46 over the last ninety days. The average estimate for the fiscal year is $5.45 per share, a rise from $5.43 ninety days ago.

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), Textron Inc. (NYSE:TXT), Rolls-Royce Group plc (RYCEY), and Zardoya Otis SA (ZOT).

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(Source: Xignite Financials)