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Eaton Q4 Earnings Beat Estimates, Revenues Up Y/Y on Organic Sales

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Eaton Corporation (ETN - Free Report) reported fourth-quarter 2024 earnings of $2.83 per share, which surpassed the Zacks Consensus Estimate by 0.7%. The bottom line increased around 11% year over year and was near the upper end of the guidance of $2.78-$2.84.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

GAAP earnings for the reported quarter were $2.45 per share, up 4.3% from $2.25 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 22 cents for intangible assets amortization, 14 cents for a multi-year restructuring program, and 2 cents of gains from acquisitions and divestitures.

Revenues of Eaton

Total quarterly revenues were $6.24 billion, which missed the Zacks Consensus Estimate of $6.35 billion by 1.7%. The figure increased 4.6% year over year. The fourth-quarter year-over-year revenue growth was driven by organic sales growth and partially offset the adverse impact of Hurricane Helene, labor strikes in the aerospace industry and 1% from negative currency translation.

Eaton Corporation, PLC Price, Consensus and EPS Surprise

 

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 fourth-quarter sales were $2.9 billion, up 9% year over year, attributed to increased organic sales. Operating profit was $918 million, up 20% year over year.

Electrical Global’s total sales were $1.6 billion, up 4% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 5.5% and offset by negative currency translation of 1.5%. Operating profit was $277 million, down 2.5% year over year.

Aerospace’s total sales were $971 million up 9% year over year, driven by organic sales growth. Operating profit was $222 million, up 11% year over year.

Vehicle’s total sales were $647 million down 10% year over year, due to a decline in organic sales and negative currency translation. Operating profit was $122 million, down 5.4% year over year.

eMobility segment’s total sales were $147 million, down 10.9% year over year, caused by a decline in organic sales and negative currency translation. Operating profit was $3 million against a loss of $16 million in the year-ago quarter.

Highlights of ETN’s Q4 Release

Selling and administrative expenses were $1.003 billion, up 4.9% year over year.

Research and development expenses were $201 million on par with the year-ago quarter’s level.

Interest expenses were $42 million, up 55.5% year over year.

Eaton’s backlog, with orders, at the end of 2024, increased 29% in Electrical Americas and 16% in Aerospace and Electric Global each on a rolling 12-month basis.

Financial Update of ETN

As of Dec. 31, 2024, the company’s cash was $555 million, up from $488 million as of Dec. 31, 2023.

As of Dec. 31, 2024, ETN’s long-term debt was $8.47 billion, up 2.8% from $8.24 billion as of Dec. 31, 2023.

Guidance of Eaton

Eaton’s first-quarter 2025 earnings are expected in the range of $2.65-$2.75 per share. The Zacks Consensus Estimate is pegged at $2.73 per share, a tad higher than the mid-point of the company’s guidance. The company expects organic growth in the range of 5.5-7.5%.

Eaton now expects adjusted earnings per share in the range of $11.8-$12.20 for 2025, indicating an increase of 11% at the midpoint from the prior-year levels. The company anticipates organic sales growth for 2025 in the range of 7-9%. Eaton expects its segment margin in the range of 24.4-24.8%.

ETN’s Zacks Rank

Currently, Eaton has a Zacks Rank #3 (Hold). 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 fourth-quarter 2024 results on Feb. 28. The Zacks Consensus Estimate for earnings is pegged at $3.19 per share, indicating an increase of 41.78% from the year-ago level. The long-term (three-to-five years) earnings growth rate of GTLS is pinned at 26.59%.

Emerson (EMR - Free Report) is scheduled to report first-quarter fiscal 2025 results on Feb. 5. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, implying an increase of 4.92% from the prior-year level.

The long-term earnings growth rate is pinned at 9.9%. EMR delivered an average earnings surprise of 6.66% in the past four quarters.

EnerSys (ENS - Free Report) is scheduled to report third-quarter fiscal 2025 results on Feb. 6. The Zacks Consensus Estimate for earnings is pegged at $3.03 per share, implying an increase of 18.36% from the prior-year level.

The long-term earnings growth rate is pinned at 18%. ENS delivered an average earnings surprise of 1.57% in the past four quarters.

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