UTX Earnings Lack GE Oomph, a Set-Up for 3M

United Technologies Corp. (UTX) reported third-quarter results before markets opened Tuesday morning, and the results were just okay. Profit up 1.2%, earnings per share (EPS) better than the consensus estimate, while revenue missed estimates by about $1 billion.

The company lowered its full-year revenue by $1 billion, but did raise the low end of its guidance by $0.10 and is now projecting full-year EPS of $6.10 to $6.15. Since our review of the conglomerates last month, United Tech has posted a new 52-week high above $112, before falling below $107 again.

3M Corp. (MMM) reports earnings on Thursday and is expected to post EPS of $1.75 on revenues of $7.85 billion. Compared with a year ago, EPS is forecast down and revenues are forecast about $350 million higher. Like United Tech, since mid-September 3M has posted a new 52-week high above $123 a share, above the consensus price target of $122.60. Read more: United Technologies Corp. (UTX)

United Technologies Corporation : Carrier Contribution Supports Industry Research at Purdue University's New Ray W. Herrick Laboratories

In keeping with its commitment to innovation and environmental responsibility, Carrier is proud to be a part of Purdue University's newly expanded heating, ventilation, air conditioning (HVAC) and refrigeration research facilities at Ray W. Herrick Laboratories. The company's recent contribution of a custom air-handling system and five years of engineering expertise will support the university's research including that conducted in Herrick's new Willis Carrier Laboratory, which will be used to advance the energy efficiency of HVAC and refrigeration equipment. Carrier, the world's leader in high-technology heating, air-conditioning and refrigeration solutions, is a part of UTC Building & Industrial Systems, a unit of UnitedTechnologies Corp. (NYSE: UTX).

"As a company founded on innovation, we have a strong, natural desire to support the next generation of innovators," said John Mandyck, chief sustainability officer, UTC Building & Industrial Systems. "Willis Carrier was just 25 years old when he invented modern air conditioning. We know some of the best ideas come from bright, young minds so we are excited to see how Purdue's student researchers will positively impact our industry." Read more: UTX

United Technologies Research Center Wins R&D 100 Award for Breakthrough Energy Storage System

United Technologies Research Center (UTRC), the research and innovation arm of United Technologies Corp. (UTX), today announced that UTRC's PureStorage flow battery energy storage technology has been named by industry experts and the editors of R&D Magazine as a recipient of the publication's coveted R&D 100 Award. It is listed among the 100 most technologically significant products introduced during 2012.

The PureStorage system was selected for a 2013 R&D Award by virtue of its ability to provide safe, energy-efficient and readily deployable electric energy storage at 5-10 times the power density of conventional flow battery cells. Various companies in Japan, Germany and China are already beginning to sell conventional commercial flow battery units. The advanced technology recognized by this award could make flow battery systems even more attractive to utilities for a range of applications globally. Read more : United Technologies Corp. (UTX)

United Technologies Corp. Dividend Stock Analysis

Linked here is a detailed quantitative analysis of United Technologies Corp. (UTX). Below are some highlights from the above linked analysis:

Company Description: United Technologies Corp. is an aerospace-industrial conglomerate with a portfolio that includes Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators, and Carrier air conditioners, among other products. In July 2012, UTX purchased aerospace competitor Goodrich.
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:

1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number

UTX is trading at a premium to all four valuations above. Since UTX's tangible book value is not meaningful, a Graham number can not be calculated. The stock is trading at a 101.8% premium to its calculated fair value of $51.67. UTX did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: Read More : United Technologies Corp. (UTX)

United Technologies Corporation Interesting February 2014

United Technologies Corp. (UTX), valued at $99.11B, started the session at $107.96.
Today, shares have traded between $107.49 and $108.29 per share with a trailing 52-week range being $74.44 to $112.46.

In a review of the consensus earnings estimate this quarter, 22 sell-side analysts are looking at $1.52 per share, which would be $0.48 better than the year-ago quarter and a $0.02 sequential decrease. The full-year EPS estimate is $6.15 which would be a $0.80 better than last year’s full-year earnings.
The quarterly earnings estimate is predicated on a consensus revenue forecast of $17.16 Billion. If reported, that would be a 4.38% increase over the year-ago quarter.

Recently, Oppenheimer downgraded UTX from Outperform to Perform (Sep 28, 2012). Previously, Argus upgraded UTX from Hold to Buy. The average price target for UTX shares by the analysts covering the stock is $118.29, which is 9.57% above where the stock opened this morning. Read more: United Technologies Corporation

Interesting February 2014 Stock Options for United Technologies

Consistently, one of the more popular stocks people enter into their stock options watchlist at stock trading United Technologies UTX +0.44% Corp. (NYSE: UTX). So this week we highlight one interesting put contract, and one interesting call contract, from the February 2014 expiration for UTX.

The put contract our YieldBoost algorithm identified as particularly interesting, is at the $100 strike, which has a bid at the time of this writing of $1.91. Collecting that bid as the premium represents a 1.9% return against the $100 commitment, or a 6.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

Selling a put does not give an investor access to UTX’s upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. So unless United Technologies Corp. sees its shares fall 7.2% and the contract is exercised (resulting in a cost basis of $98.09 per share before broker commissions. Read more: UTX

United Technologies Powers Full Steam Ahead

The mid-September taperless news by the Fed had both positive and negative connotations. Investors took it to mean that either the U.S. economy is still too weak to be pulled off life support, or a grim indicator that Congress might end up bollixing things up. 

The continued strength of the U.S. ISM Manufacturing index, however, sends out strong signals that industrials are currently at the beginning of a period of elevated capital spending, as global companies look to spur reinvestment. Businesses are under pressure to replace or upgrade machinery that is a bit long in the tooth, after a long period of dormancy during the recession. Read more: United Technologies

Bombardier CSeries 2014 Debut at Risk as Test Flights Lag

Bombardier has said the CSeries, which features the new geared turbofan engine from United Technologies Corp. (UTX)’s Pratt & Whitney, will cost about 15 percent less to operate, cut fuel burn by about 20 percent and produce less noise.

Each flight allows Bombardier to collect data on about 14,000 parameters, and initial results suggest the plane will probably meet the company’s expectations on variables such as speed and altitude, Poutissou said.

Bombardier will probably need another four to six months to compile “concrete” performance data -- including fuel efficiency and noise performance -- on the aircraft, David Newman, an analyst at Cormark Securities in Toronto, said in a note published Oct. 22. Read More:  UTX.