NYSE$ETN

Eaton Corp PLC · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported record first quarter earnings, driven by strong orders and backlog growth.

Eaton Corporation reported a strong first quarter in 2024, with record earnings per share and adjusted earnings per share, both up 28% over 2023. Sales reached a first quarter record of $5.9 billion, up 8% year-over-year, driven by organic sales growth. The company raised its full year 2024 guidance for organic sales, segment margin, earnings per share, and adjusted earnings per share.

  • Earnings per share of $2.04 and adjusted earnings per share of $2.40, both up 28% over 2023 and first quarter records.
  • Record segment margins of 23.1%, 340 basis points above the first quarter of 2023.
  • Organic sales growth of 8%, at the high end of guidance, and strong backlog growth of 27% in Electrical and 11% in Aerospace.
  • Raised full year 2024 organic sales, segment margin, earnings per share and adjusted earnings per share guidance.

Headline financials

Total Revenue

$5.94B

Previous: $5.48B+8.4%
EPS

$2.04

Previous: $1.88+8.5%
Segment margins

23.1%

Previous: 19.7%+17.3%
Capital Expenditures

-$183M

Previous: -$126M-45.2%
Free Cash Flow

$638M

Previous: $512M+24.6%
Net Income

$821M

Previous: $638M+28.7%
Operating Income

-$5.11B

Previous: -$4.82B-6.1%
Gross Profit

$2.22B

Previous: $1.88B+17.7%
Cash & Equivalents

$473M

Previous: $235M+101.3%
Total Assets

$38.5B

Previous: $35.5B+8.5%
R&D Expense

$189M

No prior period

Revenue & EPS history

Eaton · Revenue · Quarterly

$5.94B

Q1 2024+8.4%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Eaton · $5.88B total across 5 segments · Q3 2023

  • Electrical Americas
    $2.59B+19.0%
  • Electrical Global
    $1.5B+1.1%
  • Aerospace
    $867M+12.9%
  • Vehicle
    $753M+1.2%
  • eMobility
    $163M+19.0%

Forward guidance

For the full year 2024, the company is raising organic growth guidance from 6.5-8.5% to 7-9%, segment margin guidance from 22.4-22.8% to 22.8-23.2%, earnings per share guidance to between $8.95 and $9.35, and adjusted earnings per share guidance to between $10.20 and $10.60. For the second quarter of 2024, the company anticipates organic growth of 6.5-8.5%, segment margins of 22.4-22.8%, earnings per share between $2.19 and $2.29, and adjusted earnings per share between $2.52 and $2.62.

Tailwinds

  • Raising organic growth guidance from 6.5-8.5% to 7-9%.
  • Raising segment margin guidance from 22.4-22.8% to 22.8-23.2%.
  • Raising earnings per share guidance to between $8.95 and $9.35.
  • Raising adjusted earnings per share guidance to between $10.20 and $10.60.
  • Anticipates organic growth of 6.5-8.5% for the second quarter of 2024.

Headwinds

  • Second quarter of 2024, anticipates segment margins of 22.4-22.8%.
  • Second quarter of 2024, anticipates earnings per share between $2.19 and $2.29.
  • Second quarter of 2024, anticipates adjusted earnings per share between $2.52 and $2.62.
  • Unanticipated changes in the markets for the company’s business segments.
  • Unanticipated downturns in business relationships with customers or their purchases from us.

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 2024

Historical avgQ1 2024

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro