(UTX) - United Technologies Corporation - the first nine months of the year, profits jumped 17.6%

United Technologies Corporation (UTX), first presented as a Growth and Income stock on May 9, exceeded analysts' earnings expectations for 16 straight quarters. After posting solid results for the third quarter and first nine months of 2006, the company raised its full-year earnings per share guidance. Consensus estimates have been on the rise for both this year and next year. UTX has a current dividend yield of 1.6% and a five-year average dividend yield of 1.5%. Full Analysis United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company's products include Carrier heating and air conditioning, Hamilton Sundstrand aerospace systems and industrial products, Otis elevators and escalators, Pratt & Whitney aircraft engines, Sikorsky helicopters, UTC Fire & Security systems and UTC Power fuel cells. UTX, highlighted previously on May 9 as a Growth and Income pick, continues to beat analysts' earnings expectations. Two quarters have elapsed since its debut, and the company produced two more earnings surprises. UTX has now beaten the Street's estimate in 16 consecutive quarters. On Oct 17, UTX reported third-quarter profits of $996 million, or 99 cents per share. With analysts expecting 95 cents per share, the company surprised to the upside by 4.2%. The result represented a 22.2% year-over-year improvement when compared to the 81 cents posted in the third quarter of 2005. Revenues climbed 11.5% to $12.16 billion from $10.91 billion last year. Chairman and Chief Executive Officer George David stated, “Third-quarter results overall were exceptional and reflect the balance in UTC's businesses.” For the first nine months of the year, profits jumped 17.6% to $2.87 billion, while revenues rose 11.1% to $35.0 billion, when compared to the first nine months of 2005. The company increased revenues and expanded gross margins for the past six years. Profits have grown for an impressive nine consecutive years. Based on the company's strong third-quarter and year-to-date results, UTX upped its full-year earnings per share guidance to between $3.65 and $3.69. The company's previous outlook called for profits between $3.55 and $3.65 per share. Over the past 30 days, eight analysts submitted upward earnings estimate revisions for this year. For the full year of 2007, five analysts upped their estimates. Earnings per share are projected to grow 11.0% over the next 3-5 years. Management continues to add shareholder value through stock buybacks and dividend payments. During the third quarter, the company repurchased $580 million worth of its stock. For the first nine months, $1.33 billion worth was bought back. UTX forecasted its total repurchase would amount $2.0 billion for the entire year. On Oct 11, the Board of Directors declared a quarterly dividend of 26.5 cents per common share of stock. The company has a current dividend yield of 1.6% and a five-year average dividend yield of 1.5%. UTX is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home