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Sep 30, 2020
Eaton Q3 2020 Earnings Report
Eaton's Q3 2020 earnings were reported, showing a stronger than expected performance despite the COVID-19 pandemic's impact.
Key Takeaways
Eaton Corporation reported earnings per share of $1.11 and adjusted earnings per share of $1.18 for the third quarter of 2020. Sales for the quarter reached $4.5 billion. The company reaffirmed the midpoint and narrowed its full-year free cash flow guidance to between $2.4 billion and $2.6 billion.
Earnings per share were $1.11, and adjusted earnings per share were $1.18.
Sales for the third quarter of 2020 were $4.5 billion.
Organic sales were down 9 percent.
Free cash flow is narrowed to between $2.4 billion and $2.6 billion.
Eaton
Eaton
Eaton Revenue by Segment
Revenue by Segment
Electrical Americas Revenue
CapyFin.comElectrical Global Revenue
CapyFin.comAerospace Revenue
CapyFin.comVehicle Revenue
CapyFin.comeMobility Revenue
CapyFin.com Forward Guidance
The outlook for the fourth quarter remains uncertain due to the ongoing pandemic's impact on activity levels in North America and Europe. However, most businesses are showing good momentum, and the company remains optimistic that this momentum will continue through the end of the year.
Positive Outlook
- Most businesses are showing good momentum.
- Optimism that momentum will continue through year end.
- Target share repurchases of between $1.7 billion and $1.9 billion for the full year 2020.
- Remain on track to achieve the midpoint of guidance for 2020 full year free cash flow.
- Conditions have improved in vehicle markets and we are seeing higher NAFTA Class 8 production as well as increased global light vehicle production
Challenges Ahead
- The outlook for the fourth quarter remains uncertain.
- Uncertainty due to how the on-going pandemic will impact activity levels in North America and Europe.
- Organic sales were down 9 percent.
- Divestitures of the Lighting and Automotive Fluid Conveyance businesses reduced sales by 8 percent.
- Hydraulics segment sales were down 15 percent
Revenue & Expenses
Visualization of income flow from segment revenue to net income