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Dec 31, 2020
Eaton Q4 2020 Earnings Report
Eaton's Q4 2020 performance was stronger than expected, with adjusted EPS of $1.28 and sales of $4.7 billion.
Key Takeaways
Eaton Corporation reported a stronger than expected fourth quarter with organic sales down 5 percent and adjusted earnings per share of $1.28. The company generated strong cash flow, with operating cash flow totaling $943 million and free cash flow totaling $845 million.
Earnings per share were $1.18 for the fourth quarter of 2020.
Adjusted earnings per share were $1.28 for the fourth quarter of 2020.
Sales in the fourth quarter of 2020 were $4.7 billion.
Full year free cash flow totaled $2.6 billion, at the top of guidance range.
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
Eaton expects organic revenues to grow between 4 percent and 6 percent versus 2020, with growth in all segments. For full year 2021, we expect adjusted earnings per share to be between $5.40 and $5.80.
Positive Outlook
- Expect organic revenues to grow between 4% and 6% versus 2020
- Anticipate segment margins between 17.6% and 18.0%
- Adjusted earnings per share to be between $5.40 and $5.80 for full year 2021
- Expect growth in all segments
- Expect sequential growth trend to continue well into 2021 in vehicle markets
Challenges Ahead
- The divestitures of Hydraulics and Lighting businesses are expected to reduce sales by 8%
- Downturn in commercial aviation impacted aerospace segment sales
- Organic sales were down 5 percent
- The twelve-month rolling average of orders in the fourth quarter was down 6 percent, driven by declines in oil and gas and industrial markets in Electrical Global segment
- Backlog at the end of December was down 14 percent compared to December 2019 in Aerospace segment
Revenue & Expenses
Visualization of income flow from segment revenue to net income