United Technologies Unit Gets Clearance For E190-E2 Aircraft

United Technologies Corporation (NYSE:UTX) division, Pratt & Whitney and its business partner Embraer, received Type Certification from three regulatory agencies — the Agência Nacional de Aviação Civil in Brazil, the U.S. Federal Aviation Administration and the European Aviation Safety — for their new E190-E2 aircraft.

The aircraft is exclusively powered by the Pratt & Whitney Geared Turbofan (GTF) engine and is scheduled to enter into service with Widerøe Airlines, a Nordic airline company, from April 2018. Given the level of complexity involved in the E2 program, receiving statutory clearances is a testament to the companies’ dedication, hard work and teamwork. With this, together they have achieved a significant milestone in the aerospace industry.

Pratt & Whitney is one of the world’s leading suppliers of aircraft engines for the commercial, military, business jet and general aviation markets. It provides high-end technology products and services to the aerospace industries worldwide. United Technologies’ revenue-generating potential and profitability are likely to improve with this latest development.

In addition, the company expects that the strategic moves will further ensure a successful entry and production ramp-up of its GFT engines to thwart intense competition from peers. Moreover, United Technologies also has a strong aftermarket business. The company not only manufactures and sells primary products such as aircraft engines and helicopters but also sells spare parts and offers related services to keep those primary products running. The company’s aftermarket services business is relatively stable compared to new product delivery and it helps offset the negative impact of downturns in the new products market.

Moreover, United Technologies has restructured its aerospace unit. These included an overhaul of its organizational structure in the aerospace business along with some key changes in the leadership positions within it. United Technologies anticipates that the streamlined organizational set-up would enable it to better serve its employees, customers and suppliers. United Technologies has outperformed the industry in the last three months with an average return of 7.6% against a loss of 4.7% for the latter.

United Technologies has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Raven Industries, Inc. (NASDAQ:RAVN) , sporting a Zacks Rank #1 (Strong Buy), Barloworld Ltd. (OTC:BRRAY) and 3M Company (NYSE:MMM) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Raven has an expected long-term earnings growth rate of 10%. It exceeded estimates thrice in the trailing four quarters with an average beat of 25.8%.

Barloworld has an expected long-term earnings growth rate of 14.4%.

3M has an expected long-term earnings growth rate of 10.2%. It exceeded estimates thrice in the trailing four quarters with an average beat of 3.2%.

Wall Street’s Next Amazon (NASDAQ:AMZN)

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>