UTX

A Dual Focus on Valuation and Yield Is the Best Way to Combat Changes in Future Dividend Tax Rates

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With a potential hike in the dividend tax rate just around the corner, there is no more important time than now for income investors to evaluate their existing portfolio holdings to determine whether they are well-positioned for a higher-tax environment. Assuming there are no changes to the current trajectory, the top dividend tax rate is expected to rise to 39.6% next year (up from 15% currently), and the highest-income earners will see a Medicare surtax on top of that. Evaluate All Aspects of a Dividend Investment First of all, we think those investing in high-yielders (firms) at any price (HYAAP) may be most affected by this change in tax rates. These high-yielders at any price (HYAAP) tend to be favorites of those at or near retirement, particularly given the paltry payouts on fixed … Read more

Boeing Reports Solid Third Quarter; Commercial Aerospace Backlog Remains Strong

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On Wednesday, aerospace giant Boeing (click ticker for report: ) reported excellent third-quarter results that showed solid backlog trends and improving cash flow. We continue to think aerospace is one the strongest sectors in the global economy, boasting significant visibility as a result of the tremendous backlogs of the airframe makers. We do not expect to make a change to our fair value estimate of Boeing at this time. Boeing’s revenue advanced 13% during the period thanks to commercial airplane sales, which jumped 28% on higher delivery volume. Operating earnings rose roughly 6% in its commercial business, while defense earnings were roughly flat from the year-ago period. Excluding pension expense, earnings per share advanced 5% during the quarter. We continue … Read more

United Technologies’ Third Quarter Results Left Much to Be Desired

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On Tuesday, United Technologies (click ticker for report: ) reported weak third-quarter results. Sales advanced 6%, but earnings dropped by a similar amount, excluding restructuring costs. Organic sales fell 2% as negative foreign currency fluctuations adversely impacted expansion by 3 percentage points. The company’s operating margin also fell 100 basis points from the prior-year period, after adjusting for restructuring costs and net one-time items. Though the results weren’t as strong as we would have liked, we don’t expect any change to our fair value estimate to be material. New equipment orders were solid at Otis and in its North American residential HVAC business, but commercial aerospace spares orders dropped over 20% at Pratt & Whitney and 6% at UTC Aerospace … Read more

Search Dividend Reports by Company Name: Q to Z

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Going forward, please use the ‘Symbol’ search box to download stock and dividend reports of companies you are interested in. The ‘Symbol’ search box can be found in our website header. Image shown from above. Use the active search box in the website header above. Learn more about your membership >>  Note: We have now discontinued this list. Please use the ‘Symbol’ search box in the website header for stock and dividend reports. Please read about our Valuentum Dividend Cushion score (ratio) here. Just having access to this valuable metric alone could save your income portfolio thousands of dollars! The past meets the future as we showcase the Valuentum Dividend Cushion scores of Dividend Aristocrats in this article (click here). The dividend reports below … Read more

United Technologies Releases Fourth-Quarter Results; Reaffirms 2012 Outlook

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United Technologies (UTX) rounded out a solid 2011 with another decent but less-than-impressive quarter. Though we plan to revisit our assumptions on the industrial conglomerate, we don’t expect to make a material change to our fair value estimate at this time.   Organic revenue growth was a mere 2% in the fourth-quarter, but the meager growth was more due to significant strength in the aerospace aftermarket in the prior-year period than any underlying weakness. Order growth, however, was a bit lighter than we had hoped. New equipment orders at Otis advanced only 2%, while commercial HVAC new equipment orders at Carrier expanded 5%. Commercial spares orders at Hamilton Sundstrand were up 17%, but spares orders at Pratt & Whitney’s large … Read more

Honeywell, United Tech See Strength in Emerging Markets; No Global Recession in 2012

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This week we received some encouraging comments out of two bellwethers on the global industrial economy. As we outlined in our Best Ideas Newsletter, we continue to believe that the US will avoid a double-dip recession, and the results from FedEx (FDX) coupled with recently-issued 2012 outlooks from Honeywell (HON) and United Tech (UTX) reinforce this thesis. Honeywell issued its 2012 financial outlook this week indicating that sales will expand 4% to 7% (4% to 6% organic) despite some weakness in Europe and China and overall defense spending. Earnings-per-share from continuing operations is expected to jump as much as 19% over the prior year on margin expansion of 40 to 70 basis points. This is on the back of expectations … Read more

United Technologies Reports Third-Quarter Results; Order Growth Across the Board

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United Technologies (UTX) reported solid third-quarter results Wednesday that showed strong order growth despite a challenging market environment. We are maintaining our $100 fair value estimate. The conglomerate’s revenue advanced 9% during the period (6% organic) thanks to continued expansion across all six of its business segments. Order growth was also solid during the period: Otis (up 19%), commercial HVAC at Carrier (up 11%), commercial spares at Hamilton Sundstrand (up 24%) and Pratt & Whitney’s large engine business (up 3%). United Tech’s operating margin was slightly lower than last year’s quarter due to higher research and development expenses. However, the firm’s earnings-per-share and net income advanced 13% and 11%, respectively, from the same period a year ago. Cash flow generation was … Read more

United Tech’s Potential Bid For Goodrich To Start Wave Of Aerospace Acquisitions

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As we outlined previously in our long-term outlook on aerospace demand, the sector is the place to be and represents the largest weighting in the market-beating portfolio contained within our Best Ideas Newsletter, with Precision Castparts (PCP), Astronics (ATRO), and Edac Tech (EDAC) as core holdings. We outline our forecast for large commercial aircraft demand below:                       As shown above, the expected growth rate of aircraft deliveries during the next five years is truly remarkable. Both Airbus and Boeing are ramping up production of their workhorse A320 and 737 programs to thwart potential cancellations as competition heats up from global rivals — Bombardier, etc. — in the narrowbody market. Boeing has resumed a target of producing seven 777s a month (from … Read more