NYSE$ETN

Eaton Corp PLC · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Eaton reports record third quarter results driven by organic sales growth and strong segment performance.

Eaton reported a record third quarter with earnings per share of $2.53, up 14% over 2023, and adjusted earnings per share of $2.84, up 15% over 2023. Sales reached $6.3 billion, an 8% increase driven by organic sales growth. The company raised its full-year 2024 segment margin, earnings per share, and adjusted earnings per share guidance.

  • Third quarter earnings per share of $2.53, up 14% over 2023, and record quarterly adjusted earnings per share of $2.84, up 15% over 2023.
  • Record segment margins of 24.3%, 70 basis points above the third quarter of 2023.
  • 8% organic sales growth, including approximately 50 basis points of headwinds from Hurricane Helene and labor strikes in the aerospace industry.
  • Strong backlog growth of 25% in Electrical and 14% in Aerospace.

Headline financials

Total Revenue

$6.35B

Previous: $5.88B+7.9%
EPS

$2.53

Previous: $2.47+2.4%
Segment margins

24.3%

Previous: 23.6%+3.0%
Capital Expenditures

-$553M

Previous: -$514M-7.6%
Free Cash Flow

$456M

Previous: $377M+21.0%
Net Income

$1.01B

Previous: $891M+13.2%
Operating Income

-$5.29B

Previous: -$4.93B-7.3%
Gross Profit

$2.45B

Previous: $2.2B+11.4%
Cash & Equivalents

$473M

Previous: $348M+35.9%
Total Assets

$39.2B

Previous: $37.3B+5.2%
R&D Expense

$207M

Previous: $187M+10.7%

Revenue & EPS history

Eaton · Revenue · Quarterly

$6.35B

Q3 2024+7.9%vs Q3 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 the following guidance:

Tailwinds

  • Segment margins from 23.3-23.7% to 23.5-23.9%
  • Earnings per share to between $9.47 and $9.53, up 18% at the midpoint over the prior year
  • Adjusted earnings per share to between $10.75 and $10.81, up 18% at the midpoint over the prior year

Headwinds

  • Organic growth of 6-7%
  • Segment margins of 23.6-24.0%
  • Earnings per share between $2.42 and $2.48
  • Adjusted earnings per share between $2.78 and $2.84

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 2024

Historical avgQ3 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%

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