NYSE$ETN

Eaton Corp PLC · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Eaton reported record results and positive momentum driven by strong demand and robust order growth.

Eaton Corporation reported a strong fourth quarter in 2022, with sales up 12% to $5.4 billion and adjusted earnings per share of $2.06, a quarterly record and up 20% over the fourth quarter of 2021. The company also provided guidance for 2023, expecting adjusted earnings per share to be between $8.04 and $8.44.

  • Earnings per share were $1.80 for the fourth quarter of 2022.
  • Adjusted earnings per share of $2.06 were a quarterly record and up 20% over the fourth quarter of 2021.
  • Sales in the fourth quarter of 2022 were $5.4 billion, up 12% from the fourth quarter of 2021.
  • Fourth quarter segment margins were 20.8%, a fourth quarter record and above the midpoint of guidance.

Headline financials

Total Revenue

$5.38B

Previous: $4.8B+12.2%
EPS (adj)

$2.06

Previous: $1.72+19.8%
Segment margins

20.8%

No prior period
Capital Expenditures

$209M

Previous: $163M+28.2%
Free Cash Flow

$977M

Previous: $693M+41.0%
Net Income

$722M

Previous: $551M+31.0%
Operating Income

$1.12B

Previous: $926M+20.6%
Gross Profit

$1.84B

Previous: $1.57B+16.9%
Cash & Equivalents

$294M

Previous: $297M-1.0%
Total Assets

$35B

Previous: $34B+2.9%

Revenue & EPS history

Eaton · Revenue · Quarterly

$5.38B

Q4 2022+12.2%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Eaton · $5.38B total across 5 segments · Q4 2022

  • Electrical Americas
    $2.3B+19.8%
  • Electrical Global
    $1.43B+0.4%
  • Aerospace
    $812M+7.0%
  • Vehicle
    $707M+15.9%
  • eMobility
    $139M+58.0%

Forward guidance

For the full year 2023, the company expects organic growth of 7-9% and adjusted earnings per share to be between $8.04 and $8.44, up 9% at the midpoint over 2022.

Tailwinds

  • The company expects organic growth of 7-9% for the full year 2023.
  • Adjusted earnings per share for 2023 are expected to be between $8.04 and $8.44.
  • Adjusted earnings per share are expected to be up 9% at the midpoint over 2022.
  • The company anticipates organic growth of 8-10% for the first quarter of 2023.
  • Adjusted earnings per share are expected to be between $1.72 and $1.82 for the first quarter of 2023.

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 Q4 2022

Historical avgQ4 2022

+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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