United Technologies Corp. (UTX) is scheduled to report its third quarter and fiscal 2011 results on Wednesday October 20, 2011. The current Zacks Consensus Estimate for the quarter is $1.44 a share. For the quarter under review, revenue is $14.5 billion, according to the Zacks Consensus Estimate.
Second-Quarter 2011, a Synopsis
UTX reported second-quarter earnings per share from continuing operations of $1.45, above the Zacks Consensus Estimate of $1.41 and were up 20% year-over-year. The year-over-year increase in the company’s earnings, was primarily attributable to favorable foreign currency translation.
Total revenue for the quarter increased 9.2% year over year to $15.1 billion, including organic growth of 6% and 4% favorable impact from foreign currency translation.
Third-Quarter 2011 Zacks Consensus
The analysts considered by Zacks, expect United Technologies to post third-quarter 2011 earnings of $1.44 a share. The current Zacks Consensus Estimate reflects an increase of 3.8% from the prior-year quarter’s earnings. The current Zacks Consensus Estimate for the quarter ranges between $1.40 and $1.51.
Zacks Agreement & Magnitude
Among the analysts following the stock, none has raised the estimate projection in the last 7 and 30 days, therefore, the Zacks Consensus Estimate is stagnant at $1.45 cents. However, in the last 7 and 30 days, one and two of the analysts respectively lowered their projections, keeping the Zacks Consensus Estimate unchanged.
Mixed Earnings Surprise History
With respect to earnings surprises, United Technologies has topped the Zacks Consensus Estimate over the last four quarters in the range of 2.8% to 8.6%. The average remained at positive 5.5%. This suggests that United Technologies has beaten the Zacks Consensus Estimate by an average of 5.5% in the trailing four quarters.
Market Sentiment
The analysts are maintaining a negative sentiment as they expect that the company’s results for the third quarter to suffer from the capacity reduction happening in the airline industry. Delta Airlines, American Airlines and United Continental have all announced capacity reduction plans in view of high fuel costs and weak economy.
United Technologies which competes with Boeing Co. (BA) and General Electric (GE) currently has a Zacks #4 Rank, which implies short-term Sell rating on the stock.
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