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Jun 30, 2023
Eaton Q2 2023 Earnings Report
Reported record quarterly results with backlog growth and book-to-bill ratio.
Key Takeaways
Eaton reported record second-quarter earnings per share of $1.86 and record quarterly adjusted earnings per share of $2.21, up 18% over 2022. Sales for the quarter were $5.9 billion, up 13% from the second quarter of 2022, driven entirely by organic sales growth. The company raised its full year adjusted earnings per share guidance to between $8.65 and $8.85.
Record second quarter earnings per share of $1.86 and record quarterly adjusted earnings per share of $2.21, up 18% over 2022
13% organic sales growth, above the high end of guidance, record quarterly segment margins of 21.6%, 150 basis points above the second quarter of 2022 and a 33% incremental margin
Robust operating cash flow of $851 million, up 150%, and free cash flow of $691 million, up 244% versus prior year
Raised adjusted earnings per share guidance midpoint to $8.75 reflecting 16% growth over 2022
Revenue by Segment
Forward Guidance
For the third quarter of 2023, the company anticipates organic growth of 9-11% and adjusted earnings per share of between $2.27 and $2.37.
Positive Outlook
- Confident in achieving increased guidance for the year.
- Well positioned to capitalize on reindustrialization in North America and Europe.
- Benefiting from secular growth drivers of electrification.
- Benefiting from secular growth drivers of energy transition.
- Benefiting from secular growth drivers of digitalization.
Challenges Ahead
- Course of the COVID-19 pandemic globally and government actions related thereto.
- Geopolitical tensions.
- Unanticipated changes in the markets for the company’s business segments.
- Unanticipated downturns in business relationships with customers or their purchases from us.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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