United Technologies Earnings Preview

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United Technologies (NYS: UTX) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Wednesday, Oct. 19. United Technologies provides high-tech products and services to the building systems and aerospace industries worldwide.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back United Technologies, with 15 of 18 rating it a buy and the remainder rating it a hold. Analysts like United Technologies better than competitor Honeywell International overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $14.55 billion in revenue this quarter. That would represent a rise of 7.5% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.45 per share. Estimates range from $1.40 to $1.51.

What our community says:
CAPS All-Stars are solidly backing the stock with 97.1% awarding it an "outperform" rating. The community at large concurs with the All-Stars with 96.1% granting it a rating of "outperform." Fools have embraced United Technologies and haven't been shy with their opinions lately, logging 402 posts in the past 30 days. Even with a robust four out of five stars, United Technologies' CAPS rating falls a little short of the community's upbeat outlook.

Management:
United Technologies' profit has risen year over year by an average of 15.1% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

27.7%

27.8%

26.0%

29.0%

Operating Margin

14.7%

13.3%

11.9%

14.3%

Net Margin

8.7%

7.6%

8.1%

8.8%

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At the time this article was published

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