United Technologies Corporation (NYSE: UTX) stock lost over 2.4% on July 25th, 2017 (as of 10:21AM EDT; Source: Google finance) as their new equipment orders at Otis performance disappointed during the second quarter of 2017. New equipment orders at Otis performance was flat as compared to the prior corresponding period. But, Commercial aftermarket sales enhanced 4% at Pratt & Whitney and rose 7% at UTC Aerospace Systems.
Moreover, the group has improved their guidance for the rest of 2017 from the low end of their full-year adjusted EPS outlook range by 15 cents. They forecast adjusted EPS in the range of $6.45 to $6.60 while sales outlook is expected to be in the range of $58.5 to $59.5 billion. This is a better growth forecast of 3 to 4 percent as compared to their earlier forecast of 2 to 4 percent. The group believes that their franchises are well positioned and generate a long-term sustainable shareholder’s value.
As per the second quarter of 2017 performance, sales rose 3 percent which comprised a 3% organic sales rise, as the group’s strategic priorities paid off. The group is investing in innovative products and services, as well as delivering on their aerospace backlog to enhance their business.
But, Net income rose only 1% to $1.4 billion during the quarter while Cash flow from operations reached $2.1 billion. GAAP EPS rose 5% to $1.80 against the prior corresponding period while Adjusted EPS rose 2% to $1.85. The group incurred capital expenditures of $446 million while free cash flow reached $1.7 billion during the quarter.
United Technologies stock rose over 9.6% in this year to date (as of 10:42 AM EDT on July 25th, 2017; Source: Google finance). Analysts have a positive view on the stock, which has a target price of $127.29 as per tip ranks.com. Recently, Pettyjohn Wood & White Inc enhanced their stake in the group by 680.28% which contributed to the UTX stock rally. Alpha Omega Wealth Management LLC held over 1,363 shares in the group as of their first quarter. Capital Analysts increased their stake in the group by 287.1% in the fourth quarter.