United Technology To See A Mixed Quarter.

by Trefis Team
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United Technologies
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United Technologies (NYSE:UTX) is expected to report results on 23rd January. The quarter has been an interesting one for United Technologies, with the company halting the sale of the Chubb unit. The company had expected a sale of $3 billion for the unit, and the offering came in below expectations from the private equity players involved in the deal. With the $23 billion Rockwell Collins deal, the company expects to sell off its disparate businesses, and improve synergies through the remaining business.

We currently have a price estimate of $128 per share, which is higher than the market price. You can use our interactive dashboard, UTX 4Q 2018,  to modify key drivers and visualize the impact on the price estimate.

Additionally, the company also saw the Pratt and Whitney division face controversy with its A320 NEO engines, seeing failures in the current quarter. While this is a worry, the revenues for this division are not expected to be weighed down for the company for the quarter. In addition to Pratt and Whitney, the elevator segment, i.e Otis, is not expected to see any major revenue increases this quarter.

With trade wars playing out, the company did have some fears, that any escalation in trade wars may start weighing down revenues. These fears have been alleviated, with no such escalation occurring. Furthermore, the airline industry continues to do well, and continued orders for jet engines will help revenues for the quarter.

We expect that for the quarter revenues will come in higher at $16.5 billion, up 5% year on year. While expectations of earnings per share are $1.60 for the quarter. Overall, United Technologies is expected to produce mixed results in the quarter.

 

 

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