Loading...
•
Dec 31, 2019
Eaton Q4 2019 Earnings Report
Eaton's Q4 2019 earnings were reported, with EPS of $1.09 and adjusted EPS of $1.46. Sales were $5.2 billion, a 4% decrease year-over-year. The company made progress on portfolio changes and acquisitions.
Key Takeaways
Eaton Corporation reported Q4 2019 earnings per share of $1.09, or $1.46 excluding acquisition, divestiture, and vehicle warranty costs. Sales were $5.2 billion, down 4% from Q4 2018. The company's adjusted EPS was at the high end of guidance, and segment margins improved.
Earnings per share were $1.09, or $1.46 excluding charges.
Sales were $5.2 billion, down 4 percent from the fourth quarter of 2018.
Organic sales were down 4 percent.
The company recorded a pre-tax charge of $50 million for expected warranty costs in our Vehicle segment
Revenue by Segment
Forward Guidance
Eaton expects 2020 adjusted earnings per share to be between $5.60 and $5.90, flat at the midpoint with 2019, excluding the 2019 vehicle warranty costs. They anticipate adjusted earnings per share for the first quarter of 2020 to be between $1.16 and $1.26, a 4 percent decrease at the midpoint from the first quarter of 2019.
Positive Outlook
- Expects organic revenues to be between down 1 percent and up 1 percent versus 2019.
- Anticipates adjusted segment margins, which exclude acquisition and divestiture costs, to be between 17.8 percent and 18.2 percent
- Expects 2020 adjusted earnings per share to be between $5.60 and $5.90
- Acquisitions of Souriau-Sunbank, Ulusoy, Innovative Switchgear, and Power Distribution, Inc. are expected to add approximately 2% to sales
Challenges Ahead
- The divestitures of our Lighting and Automotive Fluid Conveyance businesses are expected to reduce our sales by 7½ percent
- Anticipates adjusted earnings per share for the first quarter of 2020 to be between $1.16 and $1.26, a 4 percent decrease at the midpoint from the first quarter of 2019.
- Unanticipated changes in the markets for the company’s business segments
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
Loading earnings performance data...
Loading earnings reaction data...