January 2, 2018

UTX – Market expectations are for record-high Uniform ROA, but management has concerns about their EPS guidance, inflation headwinds, and GTF shipments


  • United Technologies Corporation (UTX:USA)¬†currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 20.2x Uniform P/E, implying fairly bullish expectations for the firm. However, management has concerns about their EPS guidance, inflation headwinds, and GTF shipments
  • Specifically, management appears concerned about the potential for commodity-related inflation headwinds going forward, and may lack confidence in their ability to achieve their upgraded 2017 EPS guidance. They also appear concerned about the sustainability of GTF shipment growth
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