Eaton Q4 2023 Earnings Report
Key Takeaways
Eaton Corporation reported record fourth-quarter results, with adjusted earnings per share of $2.55, up 24% over 2022. Sales reached a record $6.0 billion, driven by 10% organic sales growth. The company issued guidance for 2024, projecting adjusted earnings per share between $9.95 and $10.35.
Record quarterly sales driven by 10% organic growth.
Adjusted earnings per share increased by 24% compared to Q4 2022.
Segment margins reached a record 22.8%, a 200-basis point improvement year-over-year.
Operating and free cash flow were both records, increasing by 9% and 8%, respectively.
Eaton
Eaton
Eaton Revenue by Segment
Forward Guidance
Eaton expects organic growth of 6.5-8.5% and adjusted earnings per share to be between $9.95 and $10.35 for the full year 2024.
Positive Outlook
- Company expects organic growth of 6.5-8.5% for the full year 2024.
- Company anticipates adjusted earnings per share to be between $9.95 and $10.35 for the full year 2024.
- Company anticipates organic growth of 6-8% for the first quarter of 2024.
- Company anticipates adjusted earnings per share to be between $2.21 and $2.31 for the first quarter of 2024.
- New multi-year restructuring program to optimize operations and global support structure.
Challenges Ahead
- Global pandemic such as COVID-19
- Geopolitical tensions or war
- 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