United Tech Confirms Earnings Outlook

United Technologies (NYSE: UTX  )  is sticking to its guns, and doubling down on its earlier predictions for 2013 earnings and revenues.

In a statement released Thursday morning, the industrial conglomerate confirmed that it expects to earn between $5.85 and $6.15 per share this year on sales of $64 billion to $65 billion. The company further advised that on the crucial "cash profitability" metric, it expects free cash flow to be "equal to or in excess of net income attributable to common shareowners."

Mathematically, what this works out to is free cash flow that could range anywhere from $4.95 billion to as high as $5.2 billion -- or more. However, in order to satisfy shareholders, the number had better be the "more" variant. Last year, UTC generated $5.26 billion in free cash flow, so anything less than that number this year would likely be viewed as bad news.

On the other hand, investors focusing on GAAP earnings will note that even the low end of UTC's earnings outlook would represent a modest 3.3% increase in per-share earnings from last year, and the high end -- 8.6%.

Investors appear to be hedging their bets. United Technologies shares are modestly higher in Thursday trading, up 0.2%, to $93.29.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2314232, ~/Articles/ArticleHandler.aspx, 4/21/2014 6:43:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.