FINWIRES · TerminalLIVE
FINWIRES

Otis Worldwide's Q2 Service Margin Miss Warrants a More Conservative Medium-Term View, RBC Says

By

Otis Worldwide's (OTIS) Q2 service segment operating margin miss warrants a more conservative view of the unit over the medium term, RBC Capital Markets said in a Tuesday research report.

A Q2 service margin miss was attributed to mix, while profitability was impacted by higher cost inflation, according to the note.

The brokerage said it expects 2027 organic growth to accelerate with some potential for margin expansion.

The company took the right decision to sacrifice near-term profitability to fix retention and drive more pricing, analysts wrote, adding that they cut 2026 and 2027 adjusted EPS guidance by 5% and 6%, respectively.

The brokerage said it reiterated its outperform rating on the stock and cut its price target to $90 per share from $98.

Price: $74.08, Change: $+0.89, Percent Change: +1.22%

Related Articles

Wire

AuMEGA Metals Starts Inaugural Diamond Drilling at Canada Targets; Shares Fall 9%

AuMEGA Metals (ASX:AAM) started inaugural diamond drilling at targets at Isle aux Morts Granite and and the adjoining Cape Ray West area along the Cape Ray shear zone in Canada, according to a Tuesday Australian bourse filing.The drilling program is designed to test a series of structural, geochemical, and geophysical targets defined by integrating geological mapping, surface geochemistry, geophysics, and structural interpretation, per the filing.The company's shares fell nearly 9% in recent trading on Tuesday.

ASX:AAM
Wire

Brown & Brown Q2 Adjusted Earnings, Revenue Rise

Brown & Brown (BRO) reported Q2 adjusted earnings late Monday of $1.07 per diluted share, up from $1.03 a year earlier.Analysts polled by FactSet expected $1.08.Revenue in the three months ended June 30 rose to $1.68 billion from $1.29 billion a year earlier.Analysts expected $1.71 billion.The company's shares fell 1.8% in after-hours trading.

$BRO
Wire

Celestica Q2 Adjusted Earnings, Revenue Rise; Shares Gain After Hours

Celestica (CLS) reported Q2 adjusted earnings late Monday of $2.54 per diluted share, up from $1.39 a year earlier.Analysts polled by FactSet expected $2.27.Revenue in the three months ended June 30 rose to $4.7 billion from $2.89 billion a year earlier.Analysts expected $4.33 billion.Celestica expects Q3 adjusted EPS of $2.88 to $3.08 on revenue of $5.25 to $5.55 billion.Analysts project EPS of $2.65 on revenue of $4.94 billion.The company boosted full-year guidance to adjusted EPS of $11.30 on revenue of $20.5 billion from the prior forecast of EPS of $10.15 on revenue of $19 billion.Analysts project EPS of $10.13 on revenue of $18.95 billion.Celestica shares rose 9.4% in after-hours trading.

$CLS