ETN Earnings Prediction
The chart below shows how ETN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ETN sees a -2.44% change in stock price 10 days leading up to the earnings, and a +4.03% change 10 days following the report. On the earnings day itself, the stock moves by +1.95%. This data can give you a slight idea of what to expect for the next quarter's release.
ETN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.34B
7.91%
-0.08%
Gross Margin
38.55%
3.21%
1.58%
Operating Margin
20.22%
4.55%
2.69%
Net Margin
15.93%
5.01%
1.79%
EPS
2.53
13.96%
2.02%
No Data Available
ETN Earnings Analysis
Eaton Corporation, plc Ordinary Shares Corporation (ETN.N) Earnings Conference Call
Positive
Record Adjusted EPS Growth: 1. Record Adjusted EPS: Eaton achieved an all-time record adjusted EPS of $2.84, reflecting a 15% increase from the previous year.
Record Segment Margins: 2. Strong Segment Margins: The company reported record segment margins of 24.3%, which is an increase of 70 basis points year-over-year.
Electrical Orders Surge: 3. Significant Order Growth: Electrical orders rose by 12%, with Electrical Americas orders increasing by 16%, contributing to a 26% year-over-year growth in backlog for Electrical Americas.
Cash Flow Performance Increase: 4. Robust Cash Flow Performance: Eaton generated operating cash flow of $1.3 billion, up 15% year-over-year, and free cash flow of $1.1 billion, marking a 23% increase compared to the prior year.
Capacity Investment Increase: 5. Increased Capacity Investments: The company raised its incremental capacity investments to $1.5 billion, reflecting a $500 million increase due to growing demand, particularly in data center markets.
Negative
Hurricane and Strikes Impact: 1. Revenue Impact from Hurricane and Strikes: Revenue was negatively impacted by approximately $50 million due to Hurricane Helene and labor strikes in the aerospace industry, which affected the company's overall growth outlook for Q4.
Vehicle Segment Decline: 2. Weak Vehicle Segment Performance: The Vehicle segment experienced a 6% organic revenue decline, reflecting ongoing weakness in the light vehicle market, which is expected to continue into 2025.
Aerospace Growth Downgrade: 3. Lowered Aerospace Growth Guidance: The aerospace business's growth guidance was reduced by 150 basis points due to the ongoing labor strikes, indicating a significant impact on expected revenue.
E-Mobility Operating Loss: 4. E-Mobility Operating Loss: The e-mobility business reported an operating loss of $7 million, continuing to incur costs related to new program launches amid slower OEM demand.
Margin Outlook Reduction: 5. Reduced Margin Outlook for Several Segments: The company lowered its margin outlook for Electrical Global, aerospace, and e-mobility by 90, 50, and 150 basis points, respectively, indicating challenges in maintaining profitability across these areas.
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ETN Earning Call Sentiment
Eaton Corporation plc (ETN) Q3 2024 Earnings Call Transcript
ETN.N
-15.56%Positive
The earnings call highlights strong financial performance with a 15% increase in adjusted EPS and 8% revenue growth, despite challenges like Hurricane Helene. The company raised its 2024 organic growth guidance, indicating confidence in future growth. Additionally, a $2 billion share repurchase program signals commitment to shareholder returns. Although there are challenges in the vehicle and e-mobility sectors, the overall positive guidance and strong data center performance suggest a positive stock price movement.