UTX - Embedded Expectations Analysis - 2019 11 12
United Technologies Corporation (UTX:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 21.9x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about EPS, sales, and Carrier market share.Specifically, management may lack confidence in their ability to sustain recent EPS growth and meet their revised margin guidance. Furthermore, they may be concerned about the sustainability of Collins performance and about the impact future trends in defense spending will have on their profitability. In addition, they may be concerned about the creditworthiness of Otis and Carrier and about the impact of a stronger dollar will have on global sales. Finally, they may lack confidence in their ability to effectively invest in digitalizing their business.
United Technologies provides technology products and services to the building systems and aerospace industries. The company has four segments: Otis, which designs, manufactures, sells and installs passenger and freight elevators; Carrier, which provides heating, ventilating, air conditioning refrigeration, fire, security and building automation products; Pratt & Whitney, which supplies aircraft engines for the commercial, military, business jet and general aviation market; and Collins Aerospace Systems, which provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.
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