United Technologies Falls on China, Strong Dollar

Net sales fell 5% to $16.3 billion, and net income fell 8% to $1.64 billion. The firm that sees the most upside has their target set at $124.


Shares were down about 4% in pre-market trading. The 50-Day Moving Average price is $96.07 and the 200 Day Moving Average price is recorded at $108.60.

United Technologies Corp.’s stock plunged the most in nearly four years this morning after it cut its 2015 profit forecast amid weak demand in the units being kept while the Sikorsky helicopter business is sold. 85 and lessened earnings forcasts by $1 dollar…

Revenues were down 5.0 percent to 16.33 billion.

As a result, it now expects per-share earnings of $6.45 to $6.60 for the year from operations, including Sikorsky.

However, adjusted earnings per share topped analysts’ expectations, while quarterly sales missed their estimates.

Overall, the company reported a profit of $US1.54 billion, or $US1.73 a share, down from $US1.68 billion, or $US1.84 a share, a year earlier. On an organic basis, revenue rose by 3 percent. The ex-dividend date of this dividend is Wednesday, August 12th. In other words, the lower the score, the better from an analyst perspective. The rating major has initiated the coverage with an buy rating on the shares.

RBC Capital Markets said that while United Technologies had cautioned at the Paris Air Show on both aerospace and Otis, “the cut to 2015 guidance is significantly larger than we had expected”. Analysts at Credit Suisse lowered their price target on shares of United Technologies from $137.00 to $135.00 and set an “outperform” rating on the stock in a research note on Wednesday, June 24th. Mr. Hayes, who took over the company in November after the abrupt departure of former CEO Louis Chenevert, has reshuffled leadership in a bid to help the company deliver on its big bets on aerospace and building systems. The company has a market cap of $98,581 million and the number of outstanding shares have been calculated to be 890,202,000 shares.


At Otis, United Technologies has been coping with the slowing of growth in China, which has been a robust market for the sale of new elevators and escalators, but where the company is under pressure to grow its service business, which could help boost profits as the rate of new real-estate development falls. At the company’s UTC Climate, Controls and Security business, which makes heating and cooling systems, Chinese orders fell 15%. The company’s Pratt & Whitney engine supply division notched higher sales and operating profits. UTC Aerospace Systems is a global provider of technologically advanced aerospace products and aftermarket service solutions. Its products are mission-critical equipment, which have been designed into particular military and commercial platforms.