Summary
United Technologies plans to split the company into 3 divisions following the Rockwell Collins merger.
Rockwell Collins reported weak Q3 results, highlighting the original merger fears.
The Rockwell Collins merger and spin-offs remain too expensive for the required effort and synergy benefits.
United Technologies Corporation (UTX) recently reported Q3 results that didn't suggest any need to purchase Rockwell Collins (COL) at a pricey valuation. The stock hasn't seen much in the way of gains during the merger process and the lengthy split off of the Carrier and Otis divisions remains even sketchier due to the costs and length of the process.
Image Source: United Technologies website
Rockwell Collins Deal
For Q3, UTC reported that adjusted sales grew 10% while adjusted EPS grew 12%. The aerospace company beat estimates and raised guidance for 2018 to $7.25 per share. The stock hasn't hit new highs confirming the stretched valuation following the big gains during 2016 and 2017.
