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Eaton
🇮🇪 NYSE:ETN
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Jun 30, 2021

Eaton Q2 2021 Earnings Report

Eaton reported record adjusted EPS and segment margins, with organic sales slightly above guidance midpoint, despite supply chain constraints.

Key Takeaways

Eaton Corporation reported strong second-quarter results, with sales of $5.2 billion, up 35% from the second quarter of 2020. Adjusted earnings per share were a record $1.72, up 98% over the second quarter of 2020. The company is raising its adjusted earnings per share guidance for 2021 to $6.73 at the midpoint, up 37% over 2020, and raising full-year 2021 operating cash flow by $200 million above previous guidance at the midpoint.

Earnings per share were $1.26 for the second quarter of 2021.

Adjusted earnings per share were a second quarter record of $1.72, up 98% over the second quarter of 2020.

Sales in the second quarter of 2021 were $5.2 billion, up 35% from the second quarter of 2020.

Second quarter segment margins were 18.6%, up 390 basis points over the second quarter of 2020.

Total Revenue
$5.22B
Previous year: $3.86B
+35.2%
EPS
$1.72
Previous year: $0.7
+145.7%
Segment margins
18.6%
Previous year: 14.7%
+26.5%
Gross Profit
$1.67B
Previous year: $979M
+70.6%
Cash and Equivalents
$279M
Previous year: $292M
-4.5%
Free Cash Flow
$484M
Previous year: $667M
-27.4%
Total Assets
$36.8B
Previous year: $30.3B
+21.3%

Eaton

Eaton

Eaton Revenue by Segment

Forward Guidance

Eaton anticipates adjusted earnings per share to be between $1.72 and $1.82 for the third quarter of 2021. The company expects 2021 adjusted earnings per share to be between $6.58 and $6.88. Additionally, Eaton expects 2021 full year adjusted operating cash flow to be between $2.6 billion and $2.8 billion.

Positive Outlook

  • Anticipated higher organic sales for the remainder of the year
  • Raising Adjusted Earnings Per Share Guidance for 2021 to $6.73 at the Midpoint, Up 37% Over 2020
  • Raising Full Year 2021 Operating Cash Flow by $200 Million Above Previous Guidance at the Midpoint
  • Strong order growth in Electrical Global segment of 46% over the second quarter of 2020
  • Orders increased 43% over the second quarter of 2020 in Electrical Americas segment

Challenges Ahead

  • Course of the COVID-19 pandemic globally and government actions related thereto
  • Unanticipated changes in the markets for the company’s business segments
  • Unanticipated downturns in business relationships with customers or their purchases from us
  • Competitive pressures on sales and pricing
  • Unanticipated changes in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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