United Technologies Earnings: Here’s Why Investors are Buying Shares Now
United Technologies Corp. (NYSE:UTX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. Shares are up 0.5%.
United Technologies Corp. Earnings Cheat Sheet
Results: Net income increased 55.25% to $2.06 billion ($1.04 per diluted share) in the quarter versus a net gain of $1.33 billion in the year-earlier quarter.
Revenue: Rose 9.58% to $16.4 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: United Technologies Corp. reported adjusted net income of $1.04 per share. By that measure, the company beat the mean analyst estimate of $1.03. It missed the average revenue estimate of $16.62 billion.
Quoting Management: “2012 was a transformational year for United Technologies with the successful completion of the Goodrich and IAE transactions, and the divestiture of several non-core assets,” said Louis Chenevert, UTC Chairman & Chief Executive Officer. “We reshaped our portfolio to focus on our core markets. We also invested $2.4 billion in developing game changing technologies and nearly $600 million on restructuring our operations to address a challenging economic environment.”
Revenue increased 9.03% from $15.04 billion in the previous quarter. Net income increased 45.37% from $1.42 billion in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.31 to a profit $1.28. For the current year, the average estimate has moved up from a profit of $5.32 to a profit of $5.33 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials.)