What Happened?
Shares of elevator manufacturer Otis (NYSE:OTIS) fell 6.2% in the morning session after the company reported underwhelming first-quarter 2025 results. Its organic revenue in the quarter fell short of Wall Street's estimates. Revenue was just in line but EPS beat. Looking ahead, Otis lifted full-year revenue guidance, and the updated figure slightly beat analysts' expectations. Overall, this was a mixed yet weaker quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Otis? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Otis’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Otis is up 1.1% since the beginning of the year, but at $93.27 per share, it is still trading 12% below its 52-week high of $106.01 from October 2024. Investors who bought $1,000 worth of Otis’s shares 5 years ago would now be looking at an investment worth $1,965.
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