The 10-second takeaway
For the quarter ended Dec. 31 (Q4), United Technologies met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, net margins expanded.
United Technologies reported revenue of $16.44 billion. The 16 analysts polled by S&P Capital IQ foresaw a top line of $16.58 billion on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $14.97 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.29. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.03 per share. GAAP EPS of $2.26 for Q4 were 54% higher than the prior-year quarter's $1.47 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.3%, 260 basis points worse than the prior-year quarter. Operating margin was 10.0%, 330 basis points worse than the prior-year quarter. Net margin was 12.5%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $15.01 billion. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $65.03 billion. The average EPS estimate is $6.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,551 members out of 1,611 rating the stock outperform, and 60 members rating it underperform. Among 444 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 435 give United Technologies a green thumbs-up, and nine 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 $91.55.
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