Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, July 24, 2009

Article Excerpt

UNITED TECHNOLOGIES CORP., $52.23, New York symbol UTX, makes a variety of products for the aerospace and construction industries. Its main subsidiaries are Pratt & Whitney (jet engines), Hamilton Sundstrand (aircraft electronics), Carrier (heating and air conditioning) and Otis (elevators). The recession continues to weigh on many of United Technologies’ clients. As a result, the company’s revenue fell 17.2% in the three months ended June 30, 2009, to $13.2 billion from $15.9 billion a year earlier. As well, United Technologies gets about 50% of its revenue from overseas operations, so unfavourable foreign-exchange rates accounted for about a third of the drop. Earnings in the quarter fell 23.5%, to $976 million, or $1.05 a share, from $1.3 billion, or $1.32 a share. However, if you exclude severance costs and other one-time items, the company would have earned $1.21 a share in the latest quarter. That beat the $1.04 that analysts were expecting. In response to the weaker demand, United Technologies will continue cutting…