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 -1.62% change in stock price 10 days leading up to the earnings, and a +3.10% change 10 days following the report. On the earnings day itself, the stock moves by +1.74%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Adjusted EPS Growth: Q4 record adjusted EPS of $2.83, up 11% from the prior year.
Segment Margin Improvement: Record segment margins of 24.7%, up 190 basis points from last year, exceeding guidance.
Electrical Orders Surge: Electrical orders increased by 12% on a rolling 12-month basis, with Electrical Americas orders up 16%.
Backlog Growth and Ratios: Record backlog growth of 29% in Electrical Americas and 16% in Aerospace, with book-to-bill ratios above 1 in both sectors.
Cash Flow Improvement: Operating cash flow reached $1.6 billion, up 23% year-over-year, contributing to a free cash flow of $1.3 billion, up 27% from the previous year.
Negative
Sales Impact Analysis: Hurricane Helane and labor strikes in the aerospace industry negatively impacted Q4 sales by approximately $80,000,000 or 130 basis points.
Vehicle Revenue Decline: Vehicle segment total revenue was down 10%, including a 7% organic decline, primarily driven by weaknesses in the North America, EMEA and APAC light vehicle markets.
eMobility Revenue Decline: eMobility segment total revenue was down 11%, including a 10% organic decline, primarily driven by customers' program launch and production ramp up delays.
Residential Market Downgrade: Residential market outlook was downgraded to negative for 2025 due to high interest rates, which have not improved borrowing costs for consumers as expected.
Electrical Segment Margin Decline: Operating margin for the Electrical Global segment was down 110 basis points versus prior year, primarily driven by mix.
Earnings call transcript: Eaton Q4 2024 EPS beats, stock rises slightly
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