Otis Worldwide (NYSE: OTIS) reported Q3 EPS of $0.69, $0.13 better than the analyst estimate of $0.56. Revenue for the quarter came in at $3.29 billion versus the consensus estimate of $3.2 billion.

• Delivers strong third quarter results; improves 2020 outlook
• Net sales down 1.4%; organic sales down 1.2%
• GAAP operating profit down $28 million with 60 basis points of margin contraction
• Adjusted operating profit up $33 million with 120 basis points of margin expansion
• New Equipment orders up slightly; backlog up 5%, 3% at constant currency
• GAAP cash flow from operations of $348 million; free cash flow of $311 million
• Improved outlook* for full-year organic sales, adjusted operating profit, adjusted EPS and free cash flow

"Otis had another strong quarter as we continued to grow share, build backlog, expand adjusted margin and generate robust cash flow. These outcomes again demonstrate the resiliency of our business, the strength of our strategy and the dedication of our colleagues around the world to provide essential services to our customers while introducing innovative solutions to grow our business," said President and CEO Judy Marks. "We are improving our 2020 outlook reflecting our ability to deliver on near-term commitments and execute our long-term strategy."

GUIDANCE:

Otis Worldwide sees FY2020 EPS of $2.42, versus the consensus of $2.30.

Otis is improving its full year outlook to reflect strong year-to-date performance and anticipated recovery profile.

• Net sales down 3 to 4%
• Organic sales down 2 to 3%
  • Organic New Equipment sales down mid to high single digits
  • Organic Service sales flat to down slightly
• Adjusted operating profit up $30 to $40 million at constant currency and up $5 to $15 million at actual currency
• Adjusted EPS of approximately $2.42; adjusted effective tax rate of ~30.5%
• Free cash flow of approximately $1.15 billion with conversion of approximately 135% of GAAP net income

*Note: When we provide outlook for organic sales, adjusted operating profit, adjusted effective tax rate and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information.

For earnings history and earnings-related data on Otis Worldwide (OTIS) click here.