NYSE$ETN

Eaton Corp PLC · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Eaton's first quarter earnings were impacted by the COVID-19 pandemic, resulting in a decrease in sales and adjusted earnings per share.

Eaton Corporation reported earnings per share of $1.07 for the first quarter of 2020, with adjusted earnings per share at $1.09, which included a $0.14 reduction due to the impact of COVID-19. Sales were $4.8 billion, a 10% decrease from the previous year, with organic sales down 7%. The company completed the sale of its Lighting business for $1.4 billion and expects to finalize the Hydraulics business sale for $3.3 billion by the end of 2020. Full-year free cash flow is projected to be between $2.3 billion and $2.7 billion.

  • Earnings per share were $1.07, and adjusted earnings per share were $1.09, which was reduced by $0.14 due to COVID-19 impact.
  • Sales reached $4.8 billion, a 10% decrease year-over-year, with organic sales down 7% due to COVID-19.
  • The Lighting business was sold for $1.4 billion, and the Hydraulics business sale is expected to close by the end of 2020 for $3.3 billion.
  • Full-year free cash flow is expected to range between $2.3 billion and $2.7 billion.

Headline financials

Total Revenue

$4.79B

Previous: $5.31B-9.7%
EPS (adj)

$1.09

Previous: $1.26-13.5%
Capital Expenditures

-$112M

Previous: -$149M+24.8%
Free Cash Flow

$326M

Previous: $373M-12.6%
Net Income

$438M

Previous: $522M-16.1%
Operating Income

-$4.1B

Previous: -$4.64B+11.7%
Gross Profit

$1.49B

Previous: $1.73B-14.1%
Cash & Equivalents

$239M

Previous: $303M-21.1%
Total Assets

$30.8B

Previous: $31.6B-2.5%

Revenue & EPS history

Eaton · Revenue · Quarterly

$4.79B

Q1 2020-9.7%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Eaton · $4.28B total across 5 segments · Q1 2020

  • Electrical Americas
    $1.79B
  • Electrical Global
    $1.14B
  • Aerospace
    $680M
  • Vehicle
    $598M
  • eMobility
    $72M

Forward guidance

Eaton withdrew its full year 2020 adjusted earnings per share guidance due to the reduction in global growth and economic uncertainty. They expect full year free cash flow for 2020 to be between $2.3 billion and $2.7 billion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.8%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.3%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+10.9%

Q4 2015

Best reaction

-8.9%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-5.2%-1.3%
Q4 2025+0.6%+4.0%-1.3%
Q3 2025-2.3%-3.3%-12.3%
Q2 2025-7.4%-5.7%-9.5%
Q1 2025-0.8%+0.2%+6.1%
Q4 2024-0.2%-3.6%-10.3%
Q3 2024-2.3%-1.6%+9.5%
Q2 2024-8.0%-8.9%+0.7%
Q1 2024-4.4%-1.8%+2.4%
Q4 2023+9.8%+10.2%+19.4%
Q3 2023+8.6%+8.6%+15.1%
Q2 2023+6.6%+5.2%+12.2%
Q1 2023+2.1%+1.3%+6.1%
Q4 2022+1.7%+6.0%+3.5%
Q3 2022+0.4%+5.7%+8.9%
Q2 2022+0.8%+0.8%-5.9%
Q1 2022+2.3%+0.5%-3.9%
Q4 2021-4.3%+0.0%-4.5%
Q3 2021+3.1%+4.2%+1.4%
Q2 2021+3.4%+4.1%+7.4%
Q1 2021+0.8%+2.2%+1.4%
Q4 2020-1.6%+0.3%+10.6%
Q3 2020-1.3%+2.4%+8.7%
Q2 2020+1.2%+1.6%+10.9%
Q1 2020-4.3%-5.8%-1.0%
Q4 2019+7.2%-2.4%-0.3%
Q3 2019+1.2%+1.6%+6.6%
Q2 2019+1.4%-2.2%-1.8%
Q1 2019-2.5%-1.4%-9.7%
Q4 2018+4.9%+5.9%+10.1%
Q3 2018+0.9%+3.1%+7.0%
Q2 2018+3.1%+2.1%+3.7%
Q1 2018-2.9%-0.2%+2.1%
Q4 2017+1.3%-1.5%-5.1%
Q3 2017+2.9%-1.4%-1.8%
Q2 2017-5.3%-4.8%-8.3%
Q1 2017+0.3%+1.0%+2.6%
Q4 2016-1.5%-1.5%+0.9%
Q3 2016-4.5%-4.7%+6.1%
Q2 2016+0.5%+2.4%+4.7%
Q1 2016+0.4%
Q4 2015+10.9%
Q3 2015+4.4%
Q2 2015-0.7%
Q1 2015+0.2%
Q4 2014+6.3%
Q3 2014+3.1%
Q2 2014-8.9%
Q1 2014-2.5%
Q4 2013-1.7%
Q3 2013+3.0%
Q2 2013-5.1%
Q1 2012+4.4%
Q1 2013+4.7%
Q4 2010+1.6%
Q4 2011+1.6%
Q4 2012+5.4%
Q3 2012+9.9%
Q2 2012+5.0%
Q3 2011-7.2%
Q2 2011+5.0%
Q1 2011+2.0%
Q3 2010-0.2%
Q2 2010-2.2%
Q1 2010-0.5%

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