United Technologies Earnings: Second Straight Quarter of Rising Net Income

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 Corporation Earnings Cheat Sheet

Results: Net income for the diversified operations rose to $1.42 billion ($1.37 per share) vs. $1.32 billion ($1.47 per share) in the same quarter a year earlier. This marks a rise of 6.9% from the year-earlier quarter.

Revenue: Rose 1.3% to $15 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: United Technologies Corporation fell short of the mean analyst estimate of $1.42 per share. It beat the average revenue estimate of $14.45 billion.

Quoting Management: “The integration of Goodrich and IAE is off to a good start with solid underlying performance at both businesses,” said Louis Chnevert, UTC Chairman & Chief Executive Officer. “We now expect just $0.10 of EPS dilution from the Goodrich acquisition in 2012 versus our prior estimate of $0.20.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 8.4% in the second quarter and fell 6.9% in the first quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.52 versus a mean estimate of net income of $1.20 per share.

Net income has dropped 7.7% year-over-year on average across the last five quarters. Performance was hurt by a 67.4% decline in the first quarter 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 fourth quarter has moved down from $1.44 a share to $1.34 over the last ninety days. For the fiscal year, the average estimate has moved down from $5.59 a share to $5.47 over the last ninety days.

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

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