Diversified business conglomerate
United Technologies Corp.
) recently reiterated its earnings guidance for 2014 prior to an
investor meeting. The outlook was probably based on steady
improvements in key end markets and solid execution of its
operational plans. At the same time, the company is likely to
remain committed to delivering sustainable organic growth through
continued focus on product development, best-in-class margins and
strong cash generation.
While reaffirming its earnings expectations for 2014 in the range
of $6.75 - $6.85 per share, United Technologies observed that its
revenues will aggregate about $65 billion. The earnings outlook
represents year-over-year growth of 9%-10%. The current Zacks
Consensus Estimate for 2014 is pegged at the high end of the guided
range at $6.85.
A strong order backlog and a moderate recovery in the global
economy have possibly given an added confidence to United
Technologies to maintain its guidance. United Technologies has
largely benefited from two global trends - increased urbanization
and a spurt in commercial flight. However, the company's military
business is likely to be affected by spending cuts on federal
United Technologies further intends to increase its share
repurchase tally in 2014 to $1.35 billion - up from the previously
announced figure of $1.25 billion. Over the years, the company has
consistently provided attractive risk-adjusted returns to its
shareholders through dividends and share repurchases.
Based in Hartford, CT, United Technologies provides high-end
technology products and services to the building systems and
aerospace industries worldwide. The company serves various end
markets such as aerospace, defense and commercial construction.
Business diversification allows United Technologies to remain
profitable amid tough economic times.
The operations of the company are primarily classified into two
principal businesses: commercial and aerospace. Under its
commercial business, the company has Otis and the UTC Climate,
Controls & Security division, which combined the former Carrier
and UTC Fire & Security divisions. The aerospace business of
the company consists of Sikorsky aircraft and UTC Propulsion &
Aerospace Systems, which includes UTC Aerospace Systems and Pratt
& Whitney divisions.
United Technologies presently has a Zacks Rank #3 (Hold). Other
better-ranked companies in the industry include Federal Signal
), ITT Corporation (
) and Macquarie Infrastructure Co. LLC (
), each carrying a Zacks Rank #2 (Buy).
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