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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
Eaton
Eaton
Eaton Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.comVehicle Revenue
CapyFin.comeMobility Revenue
CapyFin.com 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
- Unanticipated downturns in business relationships with customers or their purchases from us
- Competitive pressures on sales and pricing
Revenue & Expenses
Visualization of income flow from segment revenue to net income