Otis Q2 sales, adj EPS beat estimates on service growth

Otis said strong backlog in modernization and new equipment supports its expectation for continued growth, and the company remains confident in long-term growth opportunities across its Service portfolio.

The current average analyst rating on the shares is buy and the breakdown of recommendations is 7 strong buy or buy, 9 hold, and no sell or strong sell. The average consensus recommendation for the heavy electrical equipment peer group is buy.

Wall Street's median 12-month price target for Otis Worldwide Corp is $97.00, about 34.8% above its July 21 closing price of $71.95. The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago.

Otis said second-quarter sales rose 7%, beating analyst expectations, while adjusted EPS also beat analyst expectations but declined 4% year over year.

The company repurchased about $400 million in shares during the quarter.