Think back with me, dear Fool, to April, when United Technologies
A camp divided
At the time, UTC's words echoed the happy talk emanating from rival GE
As of yesterday, it looks like UTC will avoid GE's fate, and hang out instead with the happier campers named above. Reiterating its July guidance, UTC told investors to expect $4.80 to $4.95 per share in profits this year, on revenue exceeding $60 billion. Even better, free cash flow could equal or surpass net income -- so we're probably looking at more than $4.7 billion in FCF. That works out to about 10% revenue growth year over year, 14% better profits, and about 12% or so in free cash flow growth.
On the flip side, UTC's latest, greatest guidance probably won't wow many of the pros up on Wall Street. Analysts were already expecting UTC to post $4.94 per share in profits this year, on revenue of $60.1 billion. Basically, they're assuming the company will exceed its revenue guidance and max out its earnings projections.
... and pros
Even so, the stock gained more than 1% on Wednesday -- though it fell more than 3% on Thursday, along with the market in general -- thanks in part to a bullish prognosis from one such pro: UBS. According to the Swiss banker, UTC's decline from its October highs offers investors "a rare opportunity in a high quality name with a proven track record of performance in prior periods of economic weakness." UBS notes that UTC gets 75% of its most profitable revenue from end-markets that should continue growing in 2009-2010.
Housing may be down, you see. Homebuilders like Lennar and Centex
And making shareholders, well, "happy."
Catch up on the latest UTC news with:
More from The Motley Fool
Boeing Takes Another Step Toward Vertical Integration: Should Suppliers Panic?
The aerospace giant is moving into some of the most lucrative parts of the aftermarket. That's bad news for suppliers.
Top Stocks to Buy in the Commercial Construction Sector
These four picks offer something for growth, value, thematic, and GARP investors alike.
3 Stocks to Buy on a Dip?
Are United Technologies, UPS and Ingersoll-Rand good value stocks to buy now?