2024

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<p class="has-drop-cap">Eaton Corporation plc (NYSE: ETN) has reported a record-breaking performance for the <a href="https://www.businesswire.com/news/home/20240731508708/en/Eaton-Reports-Record-Second-Quarter-2024-Results-with-Continued-Strong-Orders-and-Backlog-Growth" target="_blank" aria-label="second quarter of 2024 (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">second quarter of 2024</a>, marking significant growth across various financial metrics. <br><br><a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">Earnings per share (EPS)</a> reached $2.48, a 33% increase compared to the second quarter of 2023. Adjusted EPS, which excludes charges related to intangible amortization, restructuring, and acquisitions, was $2.73, up 24% over the prior year. The company’s net sales for the quarter were $6.4 billion, an 8% increase from the same period in 2023, driven by 9% organic sales growth.</p>
<p>Segment margins also reached a new high of 23.7%, a 210-basis-point improvement over the previous year. Operating cash flow was $946 million, while free cash flow stood at $759 million, representing second-quarter records and reflecting increases of 11% and 10%, respectively.</p>
<p>Craig Arnold, Eaton’s chairman and CEO, attributed the strong performance to robust demand across markets, driven by trends in electrification, energy transition, and reindustrialization. Arnold emphasized that the company is making strategic capacity investments to support long-term growth.</p>
<h3 id="eaton-reports-adjusted-eps-of-2-73-against-2-61-expected">Eaton Reports Adjusted EPS of $2.73 Against $2.61 Expected</h3>
<p>When comparing Eaton’s current performance against market expectations, the company fell slightly short on EPS but exceeded revenue forecasts. Analysts had anticipated an EPS of $2.61, while Eaton reported $2.48, missing the target by $0.13. However, the adjusted EPS of $2.73 surpassed expectations.<br><br>On the revenue front, Eaton’s $6.35 billion in sales met the forecast of $6.35 billion. This discrepancy between actual and expected EPS can be attributed to various charges, including those related to restructuring and acquisitions.</p>
<p>Despite the mixed results on EPS, the company’s organic sales growth of 9% was a highlight, surpassing the high end of its guidance. Segment-specific performance also showed robust growth. For instance, the Electrical Americas segment saw a 13% increase in sales, while the Aerospace segment reported a 13% rise driven entirely by organic growth.</p>
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<h3 id="eaton-raises-full-year-2024-guidance-expects-adjusted-eps-to-be-between-2-73-to-2-83">Eaton Raises Full Year 2024 Guidance, Expects Adjusted EPS to Be Between $2.73 to $2.83</h3>
<p>Eaton has raised its full-year 2024 guidance across multiple financial metrics. The company now expects organic growth to be between 8-9%, up from the previous range of 7-9%. Segment margins are anticipated to be between 23.3-23.7%, an increase from the earlier guidance of 22.8-23.2%.</p>
<p>For the third quarter of 2024, Eaton projects an EPS range of $2.42 to $2.52 and an adjusted EPS range of $2.73 to $2.83. These adjustments reflect the company’s confidence in sustained demand and its strategic investments in capacity expansion.</p>
<p>For the full year, Eaton has set its EPS guidance between $9.38 and $9.48, representing an 18% increase at the midpoint over the prior year. Adjusted EPS is expected to be between $10.65 and $10.75, marking a 17% increase at the midpoint.</p>
<p>Additionally, the company has raised its operating cash flow guidance by $100 million, narrowing the range to $4.2 billion to $4.4 billion. Free cash flow guidance has also been increased by $100 million, with an expected range of $3.4 billion to $3.6 billion.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/eaton-corporation-etn-beats-q2-expectations-with-2-73-adj-eps-6-35-b-in-revenue/">Eaton Corporation (ETN) Beats Q2 Expectations with $2.73 Adj. EPS, $6.35 B in Revenue</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Eaton Corporation (ETN) Beats Q2 Expectations with $2.73 Adj. EPS, $6.35 B in Revenue

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