Although its shares have advanced roughly 11% over the last month, elevator company Otis Worldwide (NYSE: OTIS) reported mixed results for its second quarter. Headline sales and profits were OK, but after adjusting for currency, they appeared positive. However, a deeper look reveals why management lowered its guidance for the year. Here's what happened.

Last week, Otis reported its second-quarter earnings financial results. On the surface, the company had a mundane quarter. Net sales were down  5.8%, and earnings per share under generally accepted accounting principles (GAAP) were flat. Management blamed Chinese lockdowns and a strengthening U.S. dollar for its woes. However, some bright spots lay below the surface.

Otis had record new equipment orders and its maintenance portfolio units were up 3.5%. After the company accounted for one-time items, adjusted earnings per share were up 11.7%. The company also repurchased $200 million of its stock.

Continue reading

Source Fool.com