- United Technologies (UTX -1.8%) is lower despite reporting better than expected Q2 earnings and raising its full-year sales guidance to $58.5B-$59.5B, up from $57.5B-$59B and lifts to lower end of its EPS forecast to $6.45-$6.60 from $6.30-$6.60 earlier.
- Investors apparently were hoping for better guidance news, since full-year $6.60 EPS still would represent a decline from a year ago as the company works through the investment costs involved in rolling out its new geared turbofan jet engine.
- UTX offered no specifics on whether deliveries of the new engine are keeping pace and putting the company on track to reap the profit recovery that should come as the program matures.
- Stifel's Robert McCarthy says UTX's Q2 also was not as strong as it looked at first glance, with "segment profit in-line but aided by lower [corporate], tax and interest expense than we were modelling," while the guidance nudge was "welcome but not surprising given CEO Hayes telegraphed this at an investor event at Paris Air Show in June."
- Now read: United Technologies Corporation 2017 Q2 - Results - Earnings Call Slides
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