Otis Worldwide Corporation OTIS is scheduled to report third-quarter 2024 results on Oct. 30, before the opening bell.

In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 2.9% and rose 15.2% year over year. Net sales lagged the consensus mark by 3.5% and declined 3.2% year over year.

Otis’ earnings surpassed the consensus mark in each of the past 18 quarters.

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Otis’ Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at 97 cents in the past 60 days. The estimated figure indicates a rise of 2.1% from the year-ago level.

Otis Worldwide Corporation Price and EPS Surprise

Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote

The consensus mark for net sales is pegged at $3.59 billion, indicating a 2% increase from the year-ago reported figure of $3.52 billion.

Key Factors to Note for OTIS Q3 Earnings

The world's leading elevator and escalator manufacturing, installation and service company’s third-quarter 2024 performance is likely to have benefited from higher volume, favorable pricing and improved productivity.

Also, the company's focus on acquisitions, product innovations and the integration of new technologies driven by ongoing research and development efforts is likely to have aided its performance.

In the to-be-reported quarter, the company's Service segment is likely to have benefited from strong maintenance portfolio growth and favorable service pricing. Our model suggests revenues within the Service segment to rise 5.8% to $2.21 billion compared with the prior year.

However, new equipment orders are likely to have faced challenges in Asia, particularly in China, due to ongoing economic softness in the region. Our model predicts New Equipment revenues to decline 2.6% year over year to $1.4 billion.

Nonetheless, OTIS expects a recovery in the Americas' new equipment orders in the third quarter, driven by proposal activity and awarded projects yet to be booked.

Meanwhile, increased interest expense is likely to have impacted sales and thereby adjusted earnings in the to-be-reported quarter. OTIS anticipates earnings per share to remain roughly flat year-over-year in the third quarter. However, the company's focus on expanding operating margins through a capital-allocation strategy is likely to have aided its bottom line in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Otis this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.

Earnings ESP: Otis has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Otis carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.