Otis Worldwide (OTIS) Q3 FY2023 earnings: revenue $3.5 billion, up 5.4% on the year

Otis Worldwide Corp. (OTIS) reported revenue of $3.5 billion for Q3 FY2023, the quarter ended 30 September 2023, up 5.4% on the same quarter a year earlier. Net income was $376 million, up 16.0% on the year, and diluted earnings per share $0.91. The figures are the company's own, from the 10-Q it filed with the SEC on 26 October 2023.

Revenue

$3.5 billion

+5.4% on the year · -5.3% on the quarter

Q4 FY2021Q3 FY2023

Operating margin

16.2%

15.8% a year earlier

Q4 FY2021Q3 FY2023

Net income

$376 million

+16.0% on the year · 0.0% on the quarter

Q4 FY2021Q3 FY2023

Diluted EPS

$0.91

+18.2% on the year · +1.1% on the quarter

Q4 FY2021Q3 FY2023

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q3 FY2023	Q2 FY2023	Q3 FY2022	On the quarter	On the year
Revenue	3,523	3,720	3,344	-5.3%	+5.4%
Research and development	36.0	36.0	37.0	0.0%	-2.7%
Selling, general and administrative	452	479	417	-5.6%	+8.4%
Operating income	571	580	529	-1.6%	+7.9%
Operating margin	16.2%	15.6%	15.8%
Interest expense	38.0	34.0	35.0	+11.8%	+8.6%
Pre-tax income	532	542	493	-1.8%	+7.9%
Income tax	137	135	143	+1.5%	-4.2%
Effective tax rate	25.8%	24.9%	29.0%
Net income	376	376	324	0.0%	+16.0%
Net margin	10.7%	10.1%	9.7%
Diluted EPS	$0.91	$0.90	$0.77	+1.1%	+18.2%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q3 FY2023	Q2 FY2023	Q3 FY2022	On the quarter	On the year
Operating cash flow	306	446	239	-31.4%	+28.0%
Capital expenditure	34.0	37.0	24.0	-8.1%	+41.7%
Free cash flow	272	409	215	-33.5%	+26.5%
Free cash flow margin	7.7%	11.0%	6.4%
Cash from investing	-41.0	-70.0	72.0
Cash from financing	167	-244	-465
Depreciation and amortisation	46.0	52.0	48.0	-11.5%	-4.2%
Share-based compensation	15.0	19.0	13.0	-21.1%	+15.4%
Buybacks	225	175	300	+28.6%	-25.0%
Dividends paid	139	141	121	-1.4%	+14.9%
Dividend per share	$0.34	$0.34	$0.29	0.0%	+17.2%
Diluted shares, weighted	414m	416m	421m	-0.6%	-1.8%
Shares outstanding at period end	409m	412m	417m	-0.6%	-1.8%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q3 FY2023	Q2 FY2023	Q3 FY2022	On the quarter	On the year
Shareholders' equity	-4,788	-4,852	-4,913
Non-controlling interest	55.0	101	52.0	-45.5%	+5.8%
Redeemable equity	123	126	128	-2.4%	-3.9%
Debt	7,407	6,863	6,562	+7.9%	+12.9%
Operating lease liabilities	293	308	325	-4.9%	-9.8%
Other liabilities	7,300	7,589	7,188	-3.8%	+1.6%
Total liabilities and equity	10,390	10,135	9,342	+2.5%	+11.2%
Fixed assets	708	715	692	-1.0%	+2.3%
Goodwill	1,547	1,579	1,448	-2.0%	+6.8%
Intangible assets	336	355	346	-5.4%	-2.9%
Cash and equivalents	1,636	1,219	1,034	+34.2%	+58.2%
Receivables	3,455	3,497	3,103	-1.2%	+11.3%
Inventory	624	640	603	-2.5%	+3.5%
Other assets	2,084	2,130	2,116	-2.2%	-1.5%
Total assets	10,390	10,135	9,342	+2.5%	+11.2%

Questions

What was Otis Worldwide's revenue in Q3 FY2023?

Otis Worldwide (OTIS) reported revenue of $3.5 billion for Q3 FY2023, the quarter ended 30 September 2023, up 5.4% on the same quarter a year earlier.

How much did Otis Worldwide earn in Q3 FY2023?

Net income for Q3 FY2023 was $376 million, up 16.0% on the year, and diluted earnings per share $0.91.

When did Otis Worldwide report Q3 FY2023 results?

Otis Worldwide filed its 10-Q for the quarter ended 30 September 2023 with the SEC on 26 October 2023.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	3,569	3,414	3,488	3,344	3,439	3,346	3,720	3,523	3,620	3,437	3,601	3,548	3,675	3,350	3,595	3,690	3,796	3,566	3,859	3,914
R&D	46.0	37.0	38.0	37.0	38.0	35.0	36.0	36.0	37.0	36.0	39.0	40.0	37.0	37.0	38.0	36.0	41.0	38.0	39.0	40.0
SG&A	503	459	439	417	448	455	479	452	498	462	449	455	495	464	499	504	512	510	520	489
Operating income	496	526	487	529	491	513	580	571	522	544	570	363	531	411	547	586	589	539	575	620
Operating margin	14%	15%	14%	16%	14%	15%	16%	16%	14%	16%	16%	10%	14%	12%	15%	16%	16%	15%	15%	16%
Interest expense	35.0	36.0	35.0	35.0	34.0	33.0	34.0	38.0	50.0	43.0	43.0	43.0	54.0	57.0	50.0	53.0	57.0	58.0	62.0	65.0
Pre-tax income	447	489	451	493	455	480	542	532	477	500	544	512	483	366	521	521	526	480	547	552
Tax rate	31%	28%	23%	29%	30%	27%	25%	26%	28%	25%	17%	-9%	27%	30%	19%	25%	27%	26%	18%	23%
Net income	281	311	321	324	297	331	376	376	323	353	415	540	337	243	393	374	374	340	428	414
Net margin	8%	9%	9%	10%	9%	10%	10%	11%	9%	10%	12%	15%	9%	7%	11%	10%	10%	10%	11%	11%
Diluted EPS	$0.65	$0.73	$0.76	$0.77	$0.71	$0.79	$0.90	$0.91	$0.79	$0.86	$1.02	$1.34	$0.84	$0.61	$0.99	$0.95	$0.95	$0.87	$1.12	$1.08
Operating cash flow	277	504	353	239	464	278	446	306	597	171	308	394	690	190	215	374	817	413	267	337
Capital expenditure	41.0	30.0	27.0	24.0	34.0	25.0	37.0	34.0	42.0	31.0	24.0	32.0	39.0	34.0	36.0	37.0	45.0	33.0	44.0	39.0
Free cash flow	236	474	326	215	430	253	409	272	555	140	284	362	651	156	179	337	772	380	223	298
Buybacks	0.0	200	200	300	150	175	175	225	225	300	300	200	207	253	308	248	0.0	400	407	0.0
Dividends paid	102	102	122	121	120	120	141	139	139	138	157	155	156	155	164	164	164	163	167	168
Shares outstanding	435m	423m	420m	417m	436m	413m	412m	409m	437m	404m	401m	399m	439m	395m	392m	390m	389m	384m	381m	381m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2023, filed 26 October 2023: the filing.