United Technologies ( UTX, $152.30) beats Q4 earnings; expects 737MAX headwind to affect full-year results

United Technologies  posted fourth-quarter earnings that surpassed analysts’ expectations.

The conglomerate, which specializes in aircraft engines and aerospace systems, reported adjusted earnings  of $1.94 a share in the fourth quarter, beating analysts’ estimate of $1.84.  

Sales increased +8% from a year earlier to $19.6 billion, and slightly above the Street estimate of $19.4 billion.

Looking ahead, United Technologies  projects sales to decelerate into the “low single digits” compared to 2019. The suspension of 737 MAX production is expected to cause headwind of $550 million to $600 million.

By the end of next month, EU antitrust enforcers will rule on $121 billion proposed merger between United Technologies and U.S. contractor Raytheon.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.