UTX moves will spur gains

Article Excerpt

UNITED TECHNOLOGIES CORP. $135 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 862.3 million; Market cap: $116.4 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.utc.com) completed its acquisition of Rockwell Collins in November 2018, for $30.6 billion in cash and stock (including that firm’s debt). Rockwell is a leading maker of aircraft components. As a result of that purchase, United Technologies’ revenue in the quarter ended June 30, 2019, jumped 17.5%, to $19.6 billion from $16.7 billion a year earlier. If you exclude both currency rates and Rockwell’s contributions, sales gained 6%. Earnings in the quarter rose 20.4%, to $1.90 billion from $1.58 billion. Due to the additional shares outstanding, earnings per share improved 11.7%, to $2.20 from $1.97. The company recently announced an all-stock merger with Raytheon Co. (New York symbol RTN), a leading maker of electronic systems for military aircraft and radar systems. It’s also the world largest maker of guided missiles. United Technologies’…

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