Eaton(US:ETN) ZACKS·2024-08-01 18:12Core Insights - Eaton Corporation (ETN) reported second-quarter 2024 earnings of $2.73 per share, exceeding the Zacks Consensus Estimate by 4.6% and reflecting a 24% year-over-year increase, driven by project activity and acquired assets [1] - The company’s total revenues for the quarter were $6.35 billion, slightly missing the Zacks Consensus Estimate by 0.01%, but showing an 8.3% year-over-year growth [3] Financial Performance - GAAP earnings for the quarter were $2.48, a 33% increase from $1.86 in the same quarter last year, with differences attributed to charges related to intangible assets, restructuring, and acquisitions [2] - Selling and administrative expenses rose to $1.02 billion, up 3.5% year over year, while research and development expenses increased to $196 million, up 4.8% year over year [6] Segment Performance - Electrical Americas reported sales of $2.87 billion, a 13.4% increase year over year, with operating profit up 28% to $859 million [4] - Aerospace sales reached $0.95 billion, up 13% year over year, with operating profit increasing by 21.5% to $206 million [4] - Vehicle segment sales decreased by 4% year over year to $0.72 billion, while eMobility sales increased by 18% to $189 million [5] Guidance and Projections - For third-quarter 2024, Eaton expects earnings in the range of $2.73-$2.83 per share, with organic growth projected at 8-9% [8] - The company raised its 2024 adjusted earnings per share guidance to $10.65-$10.75, indicating a 17% increase at the midpoint from the previous year [9] - Operating cash flow estimates for 2024 were increased to $4.2-$4.4 billion, and free cash flow guidance was raised to $3.4-$3.6 billion [10] Financial Position - As of June 30, 2024, Eaton's cash position improved to $540 million from $488 million at the end of 2023, while long-term debt increased to $8.55 billion, up 3.8% from $8.24 billion [7]