Otis Worldwide Corporation OTIS reported solid results for third-quarter 2021. Its earnings and revenues surpassed the respective Zacks Consensus Estimate as well as improved on a year-over-year basis. Solid organic sales in both New Equipment and Service segments along with higher operating margins benefited the company.However, shares of this elevator and escalator manufacturing company fell 5.2% in the pre-market trading session after it reported third-quarter results.President & CEO of Otis, Judy Marks, said, "We continue to advance our strategy, progress on ESG initiatives and achieve strong results, despite the macro environment, reflecting the resiliency of the business and our ability to execute. This gives us the confidence to improve the 2021 outlook and positions us well to build on this momentum in 2022."Earnings & Revenue DiscussionThe company reported quarterly earnings of 77 cents per share, which surpassed the consensus estimate of 73 cents by 5.5% and grew 11.6% from the year-ago figure of 69 cents.Otis Worldwide Corporation Price, Consensus and EPS Surprise Otis Worldwide Corporation price-consensus-eps-surprise-chart | Otis Worldwide Corporation QuoteNet sales of $3.62 billion topped the consensus mark of $3.56 billion by 1.8% and improved 10.8% on a year-over-year basis backed by solid segmental results. Organically, net sales grew 8.1% for the quarter.Adjusted operating margin expanded 20 basis points (bps) to 15.6%, with margin expansion in both New Equipment and Service.Segment DetailsNew Equipment’s revenues of $1.68 billion increased 18.1% from the prior-year period backed by 14.1% organic growth. Organic sales were up in mid-teens in the Americas, low-single digits in EMEA and high-teens in Asia. China organic sales were up in double digits. New Equipment orders were up 3.8% at constant currency.Adjusted operating margin registered an improvement of 80 bps year over year to 8% backed by higher volume. New equipment backlog increased 4% and 1% at constant currency from the prior year.Service revenues improved 5.1% year over year to $1.94 billion backed by a 3.6% rise in organic sales. Organic maintenance and repair sales grew 4.7% but organic modernization sales fell 1.2% from the prior-year quarter. Adjusted operating margin registered an improvement of 30 bps year over year to 23.2%.Financial PositionOtis had cash and cash equivalents of $1.55 billion as of Sep 30, 2021. This compares unfavorably with 2020-end numbers of $1.78 billion. Long-term debt was $5.46 billion as of Sep 30, 2021, up from $5.26 billion at 2020-end.Net cash flows provided by operating activities were $355 million for the third quarter, up from $348 million a year ago. Free cash flow totaled $324 million, up from $311 million a year ago.2021 Guidance RaisedFor 2021, the company now expects net sales to be $14.3 billion, indicating an increase of 11.8-12.3% year over year. It earlier expected sales between $14.1 and $14.2 billion for the year. Organic sales growth is now likely to be 8.5-9% (15-15.5% for New Equipment and 4% for Service) versus 7.5-8% expected earlier. Adjusted operating profit is projected within $2.18-$2.19 billion versus $2.16-$2.18 billion of earlier prediction.Adjusted earnings are now anticipated to be $2.95 per share, up from the earlier view of $2.89-$2.93. The revised earnings expectation indicates 17% year-over-year growth. Adjusted effective tax rate is likely to be 28.5-29% versus 29% expected earlier. Free cash flow now is expected between $1.5 and 1.55 billion versus $1.45-$1.5 billion projected earlier.Zacks RankOtis currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent ReleaseNVR, Inc. NVR reported lower-than-expected earnings for third-quarter 2021. Nonetheless, both the top and bottom lines improved impressively from the year-ago period on the back of solid demand.Watsco, Inc.’s WSO shares jumped 1.1% on Oct 20, after reporting third-quarter 2021 results, wherein earnings topped the Zacks Consensus Estimate while revenues missed the same. Nevertheless, the top and bottom lines grew impressively on a year-over-year basis.UFP Industries, Inc. UFPI reported stellar results for third-quarter 2021. Both earnings and net sales beat the Zacks Consensus Estimate as well as improved impressively on a year-over-year basis. 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(UFPI): Free Stock Analysis Report Watsco, Inc. (WSO): Free Stock Analysis Report NVR, Inc. (NVR): Free Stock Analysis Report Otis Worldwide Corporation (OTIS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research