The 10-second takeaway
For the quarter ended March 31 (Q1), United Technologies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share increased significantly.
Gross margins contracted, operating margins dropped, net margins increased.
United Technologies tallied revenue of $14.40 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $14.93 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $12.42 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 $1.28. The 23 earnings estimates compiled by S&P Capital IQ forecast $1.30 per share. Non-GAAP EPS of $1.28 for Q1 were 20% lower than the prior-year quarter's $1.61 per share. (The prior-year quarter included -$0.95 per share in earnings from discontinued operations.) GAAP EPS of $1.39 for Q1 were 276% higher than the prior-year quarter's $0.37 per share. (The prior-year quarter included -$0.95 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.3%, 170 basis points worse than the prior-year quarter. Operating margin was 13.9%, 30 basis points worse than the prior-year quarter. Net margin was 8.8%, 610 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $16.48 billion. On the bottom line, the average EPS estimate is $1.58.
Next year's average estimate for revenue is $65.07 billion. The average EPS estimate is $6.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,549 members out of 1,611 rating the stock outperform, and 62 members rating it underperform. Among 429 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 417 give United Technologies a green thumbs-up, and 12 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 $100.95.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.