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Dec 31, 2022

Eaton Q4 2022 Earnings Report

Eaton reported record results and positive momentum driven by strong demand and robust order growth.

Key Takeaways

Eaton Corporation reported a strong fourth quarter in 2022, with sales up 12% to $5.4 billion and adjusted earnings per share of $2.06, a quarterly record and up 20% over the fourth quarter of 2021. The company also provided guidance for 2023, expecting adjusted earnings per share to be between $8.04 and $8.44.

Earnings per share were $1.80 for the fourth quarter of 2022.

Adjusted earnings per share of $2.06 were a quarterly record and up 20% over the fourth quarter of 2021.

Sales in the fourth quarter of 2022 were $5.4 billion, up 12% from the fourth quarter of 2021.

Fourth quarter segment margins were 20.8%, a fourth quarter record and above the midpoint of guidance.

Total Revenue
$5.38B
Previous year: $4.8B
+12.2%
EPS
$2.06
Previous year: $1.72
+19.8%
Segment margins
20.8%
Gross Profit
$1.84B
Previous year: $1.57B
+16.9%
Cash and Equivalents
$294M
Previous year: $297M
-1.0%
Free Cash Flow
$977M
Previous year: $693M
+41.0%
Total Assets
$35B
Previous year: $34B
+2.9%

Eaton

Eaton

Eaton Revenue by Segment

Forward Guidance

For the full year 2023, the company expects organic growth of 7-9% and adjusted earnings per share to be between $8.04 and $8.44, up 9% at the midpoint over 2022.

Positive Outlook

  • The company expects organic growth of 7-9% for the full year 2023.
  • Adjusted earnings per share for 2023 are expected to be between $8.04 and $8.44.
  • Adjusted earnings per share are expected to be up 9% at the midpoint over 2022.
  • The company anticipates organic growth of 8-10% for the first quarter of 2023.
  • Adjusted earnings per share are expected to be between $1.72 and $1.82 for the first quarter of 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income