Eaton Corporation ( ETN Quick Quote ETN - Free Report) has reported third-quarter 2022 earnings of $2.02 per share, which surpassed the Zacks Consensus Estimate by a penny. Earnings were up 15% year over year. The third-quarter earnings were near the higher end of the company’s guidance of $1.95-$2.05. GAAP earnings for the reported quarter were $1.52 per share compared with $1.58 in the year-ago period. The difference between GAAP and operating earnings for the reported quarter was due to charges of 25 cents associated with intangible amortization, 4 cents related to a multi-year restructuring program, and 21 cents pertaining to acquisitions and divestitures. Revenues
Total quarterly revenues were $5,313 million, marginally lagging the Zacks Consensus Estimate of $5,324 million by 0.2%. Total revenues improved 7.9% from the year-ago quarter.
Revenues gained from a 15% increase in organic sales and acquisitions added 1%. These positives were offset by a 4% decline from divestitures and a 4% decrease from a negative currency translation.
Segmental Details Electrical Americas’ total third-quarter sales were $2,179 million, up 18% from the year-ago level. The improvement was due to increased organic sales. Operating profits were $511 million, up 27% year over year. Electrical Global’s total sales were $1,486 million, up 5% from the year-ago quarter. Organic sales were up 13% from the year-ago quarter, offset by a negative currency translation of 8%. Operating profits were $305 million, up 7% year over year. Aerospace’s total sales were $768 million, up 3% from the year-ago quarter. This was due to improved organic sales and contributions from the acquisition of Mission Systems, marginally offset by a negative currency translation. Operating profits were $185 million, up 13% year over year. Vehicle’s total sales were $744 million, up 16% from the year-ago quarter due to an increase in organic sales, partially offset by negative currency translation. Operating profits were $125 million, up 9% year over year. The eMobility segment’s total sales were $137 million, up 63% year over year due to an improvement in organic sales and the acquisition of Royal Power Solutions, offset marginally by a negative currency translation. The operating loss was $2 million in third-quarter 2022, narrower than the $8 million loss registered in the year-ago quarter. Highlights of the Release
Selling and administrative expenses were $813 million, down 2.5% from the year-ago quarter.
ETN’s third-quarter research and development expenses were $165 million, up 8.6% from the prior-year period. Interest expenses for the quarter were $37 million, on par with the year-ago period. Eaton’s Electrical sector backlog was up 75% and rolling 12-month orders increased 27%, while Aerospace backlog was up 17%, with rolling 12-month orders rising 22%, all on an organic basis. Financial Update
Eaton’s cash was $231 million as of Sep 30, 2022, compared with $297 million as of Dec 31, 2021.
As of Sep 30, 2022, the company’s long-term debt was $8,082 million, down from $6,831 million as of Dec 31, 2021. Guidance
Eaton’s fourth-quarter 2022 earnings are expected to be $2-$2.10 per share. ETN expects organic revenue growth of 13-15% for the fourth quarter. Segment operating margin is expected to be 20.5%-20.9%.
Eaton expects its 2022 earnings per share in the range of $7.51-$7.61 per share. ETN expects organic revenue growth of 11-13% for 2022. The segmental operating margin for 2022 is expected to be 20-20.4%. Eaton is targeting a share buyback of $200-$300 million for 2022. Zacks Rank
Currently, Eaton has a Zacks Rank #3 (Hold). You can see
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