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Eaton (NYSE:) Corporation plc (NYSE:ETN) reported record-breaking results for the third quarter of 2023, with adjusted earnings per share reaching a quarterly high of $2.47, a 22% increase year-over-year. The company’s total sales for the quarter stood at $5.9 billion, marking an 11% increase from the same period in 2022.
The Electrical Americas segment led the way with record sales of $2.6 billion, showing a 19% increase from Q3 2022. Operating profits for this segment were reported at $719 million, with record operating margins of 27.7%. The Electrical Global segment also posted a third-quarter record with sales of $1.5 billion, up 1% from Q3 2022. Aerospace segment sales reached a record $867 million, up by 13% from Q3 2022.
The Vehicle segment and eMobility segment followed suit with sales of $753 million and $163 million respectively, each marking a 1% and 19% increase over Q3 2022.
Eaton’s operating cash flow and free cash flow for the third quarter also set new records at $1.1 billion and $913 million respectively, showing increases of 18% and 10% over Q3 2022. The company’s backlog increased by 18% compared to Q3 2022 and showed sequential growth of 4%.
In light of these robust results, Eaton has revised its full-year organic growth guidance to a range of 11%-12%, raising its adjusted earnings per share guidance to between $8.95 and $9.05. It also increased its full-year operating cash flow guidance to between $3.3-$3.7 billion.
For the fourth quarter of 2023, the company anticipates organic growth of 8-10% and adjusted earnings per share of between $2.39 and $2.49.
CEO Craig Arnold announced that the company plans to invest over $1 billion in manufacturing to support growth driven by electrification, energy transition, and digitalization. He expressed confidence in their growth and margin expansion outlook into 2024 and beyond.
Eaton’s mission is to improve quality of life and protect the environment, a goal that seems to be supported by its strong financial performance and commitment to sustainable practices.
InvestingPro Insights
Eaton Corporation’s record-breaking performance is backed by solid metrics. According to InvestingPro data, Eaton’s market cap stands at a robust $78.91 billion, with a P/E ratio of 29.12. The company’s revenue growth for the last 12 months as of Q2 2023 was 11.49%, indicating a healthy financial trajectory.
InvestingPro Tips further illuminate Eaton’s financial strength. The company’s earnings per share have been consistently increasing, and it has raised its dividend for 14 consecutive years. Eaton’s cash flows are sufficient to cover interest payments, and its liquid assets exceed short-term obligations. With 5 analysts revising their earnings upwards for the upcoming period, the company’s financial future appears promising.
In addition to these metrics and tips, InvestingPro offers a wealth of further insights and data points to help investors make informed decisions. As Eaton continues to drive growth through electrification, energy transition, and digitalization, investors can leverage InvestingPro’s comprehensive suite of tools to stay ahead of the curve.
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