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Eaton Corporation (ETN - Free Report) reported third-quarter 2024 earnings of $2.84 per share, which surpassed the Zacks Consensus Estimate by 1.4%. The bottom line increased nearly 15% year over year and came ahead of the guidance of $2.73-$2.83. This improvement can be attributed to increased project activity tied to a multi-year restructuring program and the contribution of acquired assets.
GAAP earnings for the reported quarter were $2.53 per share, up 14% from $2.22 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 21 cents for intangible assets amortization, 11 cents for a multi-year restructuring program and a cent gain from acquisitions and divestitures.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar
Revenues of Eaton
Total quarterly revenues were $6.345 billion, which missed the Zacks Consensus Estimate of $6.368 billion by 0.36%. Total revenues increased 7.9% year over year. The third-quarter year-over-year revenue growth was entirely driven by organic sales growth and partially offset the adverse impact of Hurricane Helene and labor strikes in the aerospace industry.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Electrical Americas’ total third-quarter sales were $2.96 billion, up 14.2% year over year, attributed to increased organic sales. Operating profit was $892 million, up 24.1% year over year.
Electrical Global’s total sales were $1.6 billion, up 2% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 4%, and positive currency translation added 1%. Operating profit was $294 million, down 10.6% year over year.
Aerospace’s total sales were $0.95 billion, up 9.1% year over year, driven by organic sales growth and positive currency translation. Operating profit was $230 million, up 10.1% year over year.
Vehicle’s total sales were $0.69 billion, down 7.6% year over year, due to a decline in organic sales and negative currency translation. Operating profit was $135 million, up 3% year over year.
The eMobility segment’s total sales were $167 million, up 2.5% year over year, driven by organic sales growth and positive currency translation.
Highlights of ETN’s Q3 Release
Selling and administrative expenses were $1.02 billion, up 8.3% year over year.
Research and development expenses were $207 million, up 10.7% year over year. Interest expenses were $29 million, down 12.1% year over year.
Eaton’s backlog, with orders, increased 26%, 14% and 19% in Electrical Americas, Aerospace and Electric Global, respectively, on a rolling 12-month basis.
Financial Update of ETN
As of Sept. 30, 2024, the company’s cash was $473 million, down from $488 million as of Dec. 31, 2023.
As of Sept. 30, 2024, ETN’s long-term debt was $8.67 billion, up 5.2% from $8.24 billion as of Dec. 31, 2023.
Guidance of Eaton
Eaton’s fourth-quarter 2024 earnings are expected in the range of $2.78-$2.84 per share. The Zacks Consensus Estimate is pegged at $2.82, a tad higher than the mid-point of the company’s guidance. The company expects organic growth in the range of 6-7%.
Eaton now expects adjusted earnings per share in the range of $10.75-$10.81 for 2024, indicating an increase of 18% at the midpoint from the prior-year levels. The company reiterated its organic sales guidance for 2024 in the range of 8-9%. Eaton raised its segment margin guidance from 23.3-23.7% to 23.5-23.9%.
The company reiterated its 2024 operating cash flow estimates to the range of $4.2-$4.4 billion and free cash flow guidance of $3.4-$3.6 billion.
Chart Industries, Inc (GTLS - Free Report) is scheduled to report third-quarter 2024 results on Nov. 1. The Zacks Consensus Estimate for earnings is pegged at $2.56 per share, indicating an increase of 100% from the year-ago level. The long-term (three-to-five years) earnings growth rate of GTLS is pinned at 21.6%.
Emerson (EMR - Free Report) is scheduled to report fiscal fourth-quarter results on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at $1.47 per share, implying an increase of 13.95% from the prior-year level.
The long-term earnings growth rate is pinned at 10.99%. EMR delivered an average earnings surprise of 6.3% in the last four quarters.
ESCO Technologies Inc. (ESE - Free Report) is scheduled to report fiscal fourth-quarter results on Nov. 14, 2024.
The Zacks Consensus Estimate for fiscal 2024 EPS is pegged at $4.15, implying an increase of 12.2% from the year-earlier level.
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Eaton's Q3 Earnings Surpass Estimates, Revenues Lag, Backlog Swells
Eaton Corporation (ETN - Free Report) reported third-quarter 2024 earnings of $2.84 per share, which surpassed the Zacks Consensus Estimate by 1.4%. The bottom line increased nearly 15% year over year and came ahead of the guidance of $2.73-$2.83. This improvement can be attributed to increased project activity tied to a multi-year restructuring program and the contribution of acquired assets.
GAAP earnings for the reported quarter were $2.53 per share, up 14% from $2.22 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 21 cents for intangible assets amortization, 11 cents for a multi-year restructuring program and a cent gain from acquisitions and divestitures.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar
Revenues of Eaton
Total quarterly revenues were $6.345 billion, which missed the Zacks Consensus Estimate of $6.368 billion by 0.36%. Total revenues increased 7.9% year over year. The third-quarter year-over-year revenue growth was entirely driven by organic sales growth and partially offset the adverse impact of Hurricane Helene and labor strikes in the aerospace industry.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
ETN’s Segmental Details
Electrical Americas’ total third-quarter sales were $2.96 billion, up 14.2% year over year, attributed to increased organic sales. Operating profit was $892 million, up 24.1% year over year.
Electrical Global’s total sales were $1.6 billion, up 2% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 4%, and positive currency translation added 1%. Operating profit was $294 million, down 10.6% year over year.
Aerospace’s total sales were $0.95 billion, up 9.1% year over year, driven by organic sales growth and positive currency translation. Operating profit was $230 million, up 10.1% year over year.
Vehicle’s total sales were $0.69 billion, down 7.6% year over year, due to a decline in organic sales and negative currency translation. Operating profit was $135 million, up 3% year over year.
The eMobility segment’s total sales were $167 million, up 2.5% year over year, driven by organic sales growth and positive currency translation.
Highlights of ETN’s Q3 Release
Selling and administrative expenses were $1.02 billion, up 8.3% year over year.
Research and development expenses were $207 million, up 10.7% year over year. Interest expenses were $29 million, down 12.1% year over year.
Eaton’s backlog, with orders, increased 26%, 14% and 19% in Electrical Americas, Aerospace and Electric Global, respectively, on a rolling 12-month basis.
Financial Update of ETN
As of Sept. 30, 2024, the company’s cash was $473 million, down from $488 million as of Dec. 31, 2023.
As of Sept. 30, 2024, ETN’s long-term debt was $8.67 billion, up 5.2% from $8.24 billion as of Dec. 31, 2023.
Guidance of Eaton
Eaton’s fourth-quarter 2024 earnings are expected in the range of $2.78-$2.84 per share. The Zacks Consensus Estimate is pegged at $2.82, a tad higher than the mid-point of the company’s guidance. The company expects organic growth in the range of 6-7%.
Eaton now expects adjusted earnings per share in the range of $10.75-$10.81 for 2024, indicating an increase of 18% at the midpoint from the prior-year levels. The company reiterated its organic sales guidance for 2024 in the range of 8-9%. Eaton raised its segment margin guidance from 23.3-23.7% to 23.5-23.9%.
The company reiterated its 2024 operating cash flow estimates to the range of $4.2-$4.4 billion and free cash flow guidance of $3.4-$3.6 billion.
ETN’s Zacks Rank
Currently, Eaton has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Chart Industries, Inc (GTLS - Free Report) is scheduled to report third-quarter 2024 results on Nov. 1. The Zacks Consensus Estimate for earnings is pegged at $2.56 per share, indicating an increase of 100% from the year-ago level. The long-term (three-to-five years) earnings growth rate of GTLS is pinned at 21.6%.
Emerson (EMR - Free Report) is scheduled to report fiscal fourth-quarter results on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at $1.47 per share, implying an increase of 13.95% from the prior-year level.
The long-term earnings growth rate is pinned at 10.99%. EMR delivered an average earnings surprise of 6.3% in the last four quarters.
ESCO Technologies Inc. (ESE - Free Report) is scheduled to report fiscal fourth-quarter results on Nov. 14, 2024.
The Zacks Consensus Estimate for fiscal 2024 EPS is pegged at $4.15, implying an increase of 12.2% from the year-earlier level.