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Otis' New Contract to Boost 101 Collins Street in Melbourne

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Otis Worldwide Corporation (OTIS - Free Report) continues to strengthen its presence in Australia, securing a modernization contract at 101 Collins Street, one of Melbourne's iconic buildings. This project positions Otis as a leader in providing advanced elevator solutions while enhancing its growth potential in the region.

Cutting-Edge Elevator Technology

The modernization project will see Otis upgrading 30 elevators using its advanced Skyrise MOD solution, along with the Gen3 MOD technology. Both technologies are designed for high-rise buildings and offer increased efficiency. Additionally, the installation of ReGen drive technology will conserve energy by converting electricity generated during elevator braking back into usable power, further reducing annual energy consumption for the 48-story building.

This contract also includes servicing the elevators through 2031, extending Otis' relationship with 101 Collins Street, which has been ongoing since the company installed the original elevators in 1989. By providing long-term support, Otis ensures that its cutting-edge technology remains in peak condition, benefiting both the building and its tenants.

IoT-Driven Solutions

Otis will install its Otis ONE IoT solution, a state-of-the-art technology that monitors elevator health and performance in real-time. This system provides immediate data to building managers and Otis technicians, helping to predict maintenance needs and reducing downtime.

This upgrade also builds on the installation of Otis' Compass 360 dispatching technology, which was added in 2023. The intelligent system groups passengers by destination, speeding up trips by up to 50% during peak times.

OTIS’ Strong Track Record

Otis’ extensive experience in modernizing other landmark buildings worldwide highlights the company’s capability to deliver superior vertical transportation solutions. By upgrading 101 Collins Street, Otis reinforces its commitment to providing advanced, sustainable, and reliable services that enhance urban infrastructure.

Otis’ primary focus on innovation is core to its strategy. The company maintained its research and development (R&D) investment in 2023 as well, investing $144 million and 1% of net sales. Otis also invested about $57 million in digital and strategic initiatives in 2023. It connects global R&D efforts through an operating model that sets global and local priorities based on customer and segment needs.

OTIS Share Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

OTIS’ stock gained 6.4% over the past six months compared with the Zacks Building Products - Miscellaneous industry’s 8% growth. That said, earnings estimates have increased to $3.88 per share from $3.87 over the past 60 days, depicting analysts’ optimism over the company’s prospects. The estimated figure indicates 9.6% growth from a year ago.

OTIS’ Zacks Rank & Other Key Picks

Currently, OTIS carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the same space:

Frontdoor, Inc. (FTDR - Free Report) presently carries a Zacks Rank #2. Frontdoor has a trailing four-quarter earnings surprise of 279%, on average. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for FTDR’s 2024 sales and earnings per share (EPS) indicates a rise of 3% and 21.3%, respectively, from the prior-year levels. FTDR shares have gained 50.9% over the past six months.

Construction Partners, Inc. (ROAD - Free Report) presently carries a Zacks Rank #2. Construction Partners has a trailing four-quarter earnings surprise of 35.1%, on average.

The Zacks Consensus Estimate for ROAD’s fiscal 2024 sales and EPS indicates a rise of 18% and 52.1%, respectively, from the prior-year levels. ROAD shares have gained 24.4% over the past six months.

Armstrong World Industries, Inc. (AWI - Free Report) presently carries a Zacks Rank #2. Armstrong has a trailing four-quarter earnings surprise of 15.4%, on average.

The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates a rise of 10.1% and 14.1%, respectively, from the prior-year levels. AWI shares have gained 9.2% over the past six months.

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