United Technologies Beats Estimates Yet Again

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United Technologies (NYS: UTX) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), United Technologies met expectations on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly, and earnings per share expanded.

Gross margins expanded, operating margins contracted, net margins improved.

Revenue details
United Technologies reported revenue of $15.0 billion. The 16 analysts polled by S&P Capital IQ expected revenue of $15.1 billion. Sales were 0.9% higher than the prior-year quarter's $14.9 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.47. The 15 earnings estimates compiled by S&P Capital IQ anticipated $1.46 per share. GAAP EPS of $1.47 for Q4 were 12% higher than the prior-year quarter's $1.31 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.5%, 60 basis points better than the prior-year quarter. Operating margin was 12.5%, 100 basis points worse than the prior-year quarter. Net margin was 8.9%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $13.6 billion. On the bottom line, the average EPS estimate is $1.25.

Next year's average estimate for revenue is $63.0 billion. The average EPS estimate is $5.77.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,530 members out of 1,591 rating the stock outperform, and 61 members rating it underperform. Among 437 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 427 give United Technologies a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Technologies is outperform, with an average price target of $89.61.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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