UTX Beats by a Penny - Analyst Blog

United Technologies Corporation (UTX) reported fourth quarter 2009 earnings per share of $1.15, down 7% over the year-ago quarter. Results for the current quarter include an $0.08 per share charge for restructuring costs net of one-time items. This is ahead of Zacks Consensus Estimate of $1.14 per share.

Consolidated revenues for the quarter of $14.1 billion were 5% below the prior year, including 6 points of organic decline and 1 point of net divestitures, offset by 3 points of favorable foreign currency translation. Segment operating margin at 13.7% was 110 basis points higher than in the prior year.

Restructuring and other charges for the quarter were $135 million, bringing the full year to $830 million. For the year, restructuring and other charges were $0.46 of earnings per share, net of one-time gains.

Share repurchase in the quarter was $320 million and totaled $1.1 billion for the year. Acquisition spending was $703 million for the year with $146 million in the fourth quarter.

Cash and equivalents were $4.4 billion with long-term debt at $8.2 billion and shareowners’ equity at $20 billion.

The company expects order rates will keep pressure on its top line, particularly in the first half of 2010, and anticipates that benefits from structural cost actions will allow it to deliver earnings growth of 7% to 13% with 2010 earnings per share of $4.40 to $4.65.

United Technologies Corp., based in Hartford, Connecticut, is a diversified company providing high technology products and services to the building and aerospace industries. Major competitors include General Electric Company (GE) and Honeywell International Inc (HON).

We currently have a Neutral recommendation on UTX.

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