Otis Worldwide Stock Falls After 2025 Outlook, Q4 Profit Disappoint Wall Street: Retail’s Still Bullish

synopsis

Otis Worldwide Corp (OTIS) stock fell 1% in the morning trade on Wednesday after the company forecasted 2025 profit below estimates and reported downbeat quarterly earnings.

On an adjusted basis, the company reported a net income of $0.93 per share for the fourth quarter, missing the Wall Street estimate of $0.96 per share, according to FinChat data.

Its projected 2025 earnings range from $4 to $4.10 per share, compared with the average analysts’ estimate of $4.12 per share.

In the fourth quarter, the elevator maker’s new equipment net sales tumbled 7.4% to $1.36 billion year-over-year (YOY), as mid-single-digit percentage point organic sales growth in the Americas, Europe, Middle East, and Asia Pacific was more than offset by a greater than 20% fall in China.

Its new equipment orders fell 4.4%, hurt by a 14.7% decline in Asia.

Net sales in the services segment rose 7.6% to $2.32 billion, and modernization orders rose 18% during the quarter.

The company expects new equipment sales to be down 1% to 4% in 2025, hurt by a decline in the Americas and Asia. It said the market challenges remain in China.  

Otis said it expects to buy shares worth $800 million this year, below the $1 billion share buybacks it completed in 2024.

It had authorized a fresh $2 billion share buyback plan earlier in January.

Retail sentiment on Stocktwits rose to ‘bullish’ (64/100) territory from ‘neutral’(48/100) a week ago, while retail chatter jumped to ‘extremely high.'

OTIS’s Sentiment Meter and Message Volume as of 10:40 a.m. ET on Jan. 29, 2025 | Source: Stocktwits

Over the past year, Otis stock has gained 7.7%.

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