NYSE$ETN

Eaton Corp PLC · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Eaton's Q3 2020 earnings were reported, showing a stronger than expected performance despite the COVID-19 pandemic's impact.

Eaton Corporation reported earnings per share of $1.11 and adjusted earnings per share of $1.18 for the third quarter of 2020. Sales for the quarter reached $4.5 billion. The company reaffirmed the midpoint and narrowed its full-year free cash flow guidance to between $2.4 billion and $2.6 billion.

  • Earnings per share were $1.11, and adjusted earnings per share were $1.18.
  • Sales for the third quarter of 2020 were $4.5 billion.
  • Organic sales were down 9 percent.
  • Free cash flow is narrowed to between $2.4 billion and $2.6 billion.

Headline financials

Total Revenue

$4.53B

Previous: $5.31B-14.8%
EPS (adj)

$1.18

Previous: $1.52-22.4%
Capital Expenditures

-$291M

Previous: -$441M+34.0%
Free Cash Flow

$155M

Previous: $160M-3.1%
Net Income

$446M

Previous: $601M-25.8%
Operating Income

-$3.95B

Previous: -$4.57B+13.6%
Gross Profit

$1.48B

Previous: $1.8B-18.1%
Cash & Equivalents

$429M

Previous: $549M-21.9%
Total Assets

$31B

Previous: $31.9B-2.9%

Revenue & EPS history

Eaton · Revenue · Quarterly

$4.53B

Q3 2020-14.8%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Eaton · $4.09B total across 5 segments · Q3 2020

  • Electrical Americas
    $1.7B
  • Electrical Global
    $1.2B
  • Vehicle
    $573M
  • Aerospace
    $540M
  • eMobility
    $79M

Forward guidance

The outlook for the fourth quarter remains uncertain due to the ongoing pandemic's impact on activity levels in North America and Europe. However, most businesses are showing good momentum, and the company remains optimistic that this momentum will continue through the end of the year.

Tailwinds

  • Most businesses are showing good momentum.
  • Optimism that momentum will continue through year end.
  • Target share repurchases of between $1.7 billion and $1.9 billion for the full year 2020.
  • Remain on track to achieve the midpoint of guidance for 2020 full year free cash flow.
  • Conditions have improved in vehicle markets and we are seeing higher NAFTA Class 8 production as well as increased global light vehicle production

Headwinds

  • The outlook for the fourth quarter remains uncertain.
  • Uncertainty due to how the on-going pandemic will impact activity levels in North America and Europe.
  • Organic sales were down 9 percent.
  • Divestitures of the Lighting and Automotive Fluid Conveyance businesses reduced sales by 8 percent.
  • Hydraulics segment sales were down 15 percent

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 Q3 2020

Historical avgQ3 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%

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