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Eaton (ETN) Q4 Earnings Surpass Estimates, Revenues Up Y/Y
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Eaton Corporation (ETN - Free Report) reported fourth-quarter 2021 earnings of $1.72 per share, which surpassed the Zacks Consensus Estimate of $1.71 by 0.6%. Furthermore, earnings were up 18.6% year over year.
GAAP earnings for the reported quarter were $1.37 per share compared with $1.18 in the year-ago period. The difference between GAAP and operating earnings for the reported quarter was due to charges of 23 cents associated with intangible amortization, 3 cents related to a multi-year restructuring program, and 9 cents pertaining to acquisitions and divestitures.
Revenues
Total quarterly revenues came in at $4,798 million, which missed the Zacks Consensus Estimate of $4,904 million by 2.2%. Total revenues, however, improved 2.4% from the year-ago quarter.
The year-over-year improvement is due to 6% growth in organic sales and 7% growth from acquisitions, offset by 1% negative currency translation and 10% decline due to the Hydraulics business divestiture.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Electrical Americas’ total fourth-quarter sales were $1,917 million, up 12.6% from the year-ago level. This improvement was due to improved organic sales and contribution from the acquisition of Tripp Lite. Operating profits were $368 million, up 3% year over year.
Electrical Global’s total sales were $1,424 million, up 13.7% from the year-ago quarter. Organic sales were up 15% from the year-ago quarter, offset by negative currency translation of 1%. Operating profits were $277 million, up 33% year over year.
Aerospace’s total sales were $759 million, up 40% from the year-ago quarter. This was due to improved organic sales and contribution from the acquisition of Cobham Mission Systems, marginally offset by negative currency translation. Operating profits were $189 million, up 91% year over year.
Vehicle total sales were $610 million, down 2% from the year-ago quarter due to a drop in organic sales and negative currency translation. Operating profits were $100 million, down 3% year over year.
eMobility segment’s total sales were $88 million, up 4% year over year due to an improvement in organic sales.
Highlights of the Release
Selling and administrative expenses were $751 million, down 1.8% from the year-ago quarter.
ETN’s fourth-quarter research and development expenses were $162 million, up 15.7% from the prior-year period. Interest expenses for the quarter were $74 million, down 3.9% from the year-ago period.
Orders in Electrical Americas, Electrical Global, and Aerospace were up 20%, 22%, and 19% year over year, respectively.
Financial Update
Eaton’s cash was $297 million as of Dec 31, 2021 compared with $438 million on Dec 31, 2020.
As of Dec 31, 2021, the company’s long-term debt was $6,831 million, down from $7,010 million on Dec 31, 2020.
For the fourth quarter, adjusted operating cash flow was $856 million and free cash flow totaled $693 million.
Guidance
Eaton’s first-quarter 2022 earnings are expected in the range of $1.55-$1.65 per share. It now expects organic revenue growth in the range of 7-9% for the first quarter.
Eaton expects 2022 earnings per share in the range of $7.30-$7.70. ETN now expects organic revenue growth in the range of 7-9% for 2022. Segment operating margin for 2022 is now expected in the range of 19.9-20.3%.
Eaton is targeting share buyback in the range of $200-$300 million in 2022.
A.O. Smith Corporation (AOS - Free Report) came up with fourth-quarter 2021 quarterly earnings of 77 cents per share, which beat the Zacks Consensus Estimate of 87 cents by nearly 13%.
A.O. Smith’s long-term (three to five years) earnings growth is pegged at 9%. The Zacks Consensus Estimate for AOS’ 2022 earnings per share indicates 19.9% year-over-year growth.
AZZ Inc. (AZZ - Free Report) reported third-quarter fiscal 2022 quarterly earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 82 cents by 3.7%.
AZZ reported an average earnings surprise of 16.9% in the last four quarters. The Zacks Consensus Estimate for AZZ’s fiscal 2022 earnings per share indicates 50.2% year-over-year growth.
Emerson (EMR - Free Report) came up with first-quarter fiscal 2022 quarterly earnings of $1.05 per share, which beat the Zacks Consensus Estimate of 99 cents by 6.1%.
Emerson’s long-term (three to five years) earnings growth is pegged at 8.7%. The Zacks Consensus Estimate for EMR’s fiscal 2022 earnings per share indicates 19.8% year-over-year growth.
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Eaton (ETN) Q4 Earnings Surpass Estimates, Revenues Up Y/Y
Eaton Corporation (ETN - Free Report) reported fourth-quarter 2021 earnings of $1.72 per share, which surpassed the Zacks Consensus Estimate of $1.71 by 0.6%. Furthermore, earnings were up 18.6% year over year.
GAAP earnings for the reported quarter were $1.37 per share compared with $1.18 in the year-ago period. The difference between GAAP and operating earnings for the reported quarter was due to charges of 23 cents associated with intangible amortization, 3 cents related to a multi-year restructuring program, and 9 cents pertaining to acquisitions and divestitures.
Revenues
Total quarterly revenues came in at $4,798 million, which missed the Zacks Consensus Estimate of $4,904 million by 2.2%. Total revenues, however, improved 2.4% from the year-ago quarter.
The year-over-year improvement is due to 6% growth in organic sales and 7% growth from acquisitions, offset by 1% negative currency translation and 10% decline due to the Hydraulics business divestiture.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
Segment Details
Electrical Americas’ total fourth-quarter sales were $1,917 million, up 12.6% from the year-ago level. This improvement was due to improved organic sales and contribution from the acquisition of Tripp Lite. Operating profits were $368 million, up 3% year over year.
Electrical Global’s total sales were $1,424 million, up 13.7% from the year-ago quarter. Organic sales were up 15% from the year-ago quarter, offset by negative currency translation of 1%. Operating profits were $277 million, up 33% year over year.
Aerospace’s total sales were $759 million, up 40% from the year-ago quarter. This was due to improved organic sales and contribution from the acquisition of Cobham Mission Systems, marginally offset by negative currency translation. Operating profits were $189 million, up 91% year over year.
Vehicle total sales were $610 million, down 2% from the year-ago quarter due to a drop in organic sales and negative currency translation. Operating profits were $100 million, down 3% year over year.
eMobility segment’s total sales were $88 million, up 4% year over year due to an improvement in organic sales.
Highlights of the Release
Selling and administrative expenses were $751 million, down 1.8% from the year-ago quarter.
ETN’s fourth-quarter research and development expenses were $162 million, up 15.7% from the prior-year period. Interest expenses for the quarter were $74 million, down 3.9% from the year-ago period.
Orders in Electrical Americas, Electrical Global, and Aerospace were up 20%, 22%, and 19% year over year, respectively.
Financial Update
Eaton’s cash was $297 million as of Dec 31, 2021 compared with $438 million on Dec 31, 2020.
As of Dec 31, 2021, the company’s long-term debt was $6,831 million, down from $7,010 million on Dec 31, 2020.
For the fourth quarter, adjusted operating cash flow was $856 million and free cash flow totaled $693 million.
Guidance
Eaton’s first-quarter 2022 earnings are expected in the range of $1.55-$1.65 per share. It now expects organic revenue growth in the range of 7-9% for the first quarter.
Eaton expects 2022 earnings per share in the range of $7.30-$7.70. ETN now expects organic revenue growth in the range of 7-9% for 2022. Segment operating margin for 2022 is now expected in the range of 19.9-20.3%.
Eaton is targeting share buyback in the range of $200-$300 million in 2022.
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.
Other Releases
A.O. Smith Corporation (AOS - Free Report) came up with fourth-quarter 2021 quarterly earnings of 77 cents per share, which beat the Zacks Consensus Estimate of 87 cents by nearly 13%.
A.O. Smith’s long-term (three to five years) earnings growth is pegged at 9%. The Zacks Consensus Estimate for AOS’ 2022 earnings per share indicates 19.9% year-over-year growth.
AZZ Inc. (AZZ - Free Report) reported third-quarter fiscal 2022 quarterly earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 82 cents by 3.7%.
AZZ reported an average earnings surprise of 16.9% in the last four quarters. The Zacks Consensus Estimate for AZZ’s fiscal 2022 earnings per share indicates 50.2% year-over-year growth.
Emerson (EMR - Free Report) came up with first-quarter fiscal 2022 quarterly earnings of $1.05 per share, which beat the Zacks Consensus Estimate of 99 cents by 6.1%.
Emerson’s long-term (three to five years) earnings growth is pegged at 8.7%. The Zacks Consensus Estimate for EMR’s fiscal 2022 earnings per share indicates 19.8% year-over-year growth.