The 10-second takeaway
For the quarter ended June 30 (Q2), United Technologies missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, net margins increased.
United Technologies logged revenue of $16.01 billion. The 19 analysts polled by S&P Capital IQ predicted sales of $16.40 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $13.81 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 $1.65. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.57 per share. Non-GAAP EPS of $1.65 for Q2 were 4.4% higher than the prior-year quarter's $1.58 per share. (The prior-year quarter included -$0.15 per share in earnings from discontinued operations.) GAAP EPS of $1.71 for Q2 were 16% higher than the prior-year quarter's $1.47 per share. (The prior-year quarter included -$0.15 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 27.8%, 30 basis points worse than the prior-year quarter. Operating margin was 15.7%, 10 basis points better than the prior-year quarter. Net margin was 9.7%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $16.37 billion. On the bottom line, the average EPS estimate is $1.55.
Next year's average estimate for revenue is $64.53 billion. The average EPS estimate is $6.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,561 members out of 1,622 rating the stock outperform, and 61 members rating it underperform. Among 434 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 424 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 $103.68.
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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.