Otis Worldwide Corporation ( OTIS ) shares are moving lower on Wednesday after reporting worse-than-expected 2024 third-quarter financial results and lowered its annual outlook.

What To Know: Although Otis reported adjusted EPS of 96 cents, missing analysts’ estimates of 97 cents, this figure still represents a 1.1% year-over-year increase.

In addition, Otis reported sales of $3.54 billion, missing analysts estimate of $3.58 billion. The reported figure represents a 0.7% increase year-over-year, which the company attributes to service-related sales. Specifically, the company reported a year-over-year increase of 13.7% in organic modernization sales, 7.7% growth in organic sales, and a 6.4% rise in organic maintenance and repair sales.

However, the company reported a 8.8% year-over-year decline in equipment net sales. Otis saw low single-digit growth in equipment sales across the Asia Pacific and the Americas, though this was offset by a decline of over 20% in China.

“Otis returned to top-line growth in the third quarter as we continue to demonstrate the strength of our Service-driven business model. Modernization organic sales accelerated to mid-teens, and our portfolio grew more than 4% for the eighth consecutive quarter,” said Judy Marks, Chair, CEO and President.

“For the balance of the year, we remain focused on driving productivity to offset the persistent headwinds we have faced in New Equipment, while Service performance continues its steady global growth trajectory supported by continued portfolio growth complemented by a solid modernization backlog. As we execute on our customer-centric strategy we expect to finish 2024 with another year of solid EPS growth.”

The company lowered its guidance for the 2024 fiscal year. Otis revised its adjusted EPS forecast from a range of $3.85 to $3.90 down to $3.85, in line with analysts estimate. Additionally, the company reduced its sales guidance from a range of $14.30 billion to $14.50 billion to $14.20 billion versus analysts estimate of $14.42 billion.

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OTIS Price Action: At the time of writing, Otis stock is moving 3.03% lower at $98.34, according to data from Benzinga Pro.

Image: Courtesy of Otis Worldwide Corporation ( OTIS )