Eaton Q4 Earnings Beat Estimates, Revenues Up Y/Y on Organic Sales

Core Insights - Eaton Corporation (ETN) reported fourth-quarter 2024 earnings of $2.83 per share, exceeding the Zacks Consensus Estimate by 0.7% and reflecting an 11% year-over-year increase, aligning with the upper end of the guidance range of $2.78-$2.84 [1][10] Financial Performance - GAAP earnings for the quarter were $2.45 per share, a 4.3% increase from $2.25 in the same quarter last year, with a difference attributed to charges for intangible assets amortization, restructuring, and gains from acquisitions [2] - Total quarterly revenues were $6.24 billion, missing the Zacks Consensus Estimate of $6.35 billion by 1.7%, but showing a 4.6% year-over-year growth driven by organic sales growth, partially offset by Hurricane Helene, labor strikes, and negative currency translation [3] Segment Performance - Electrical Americas reported sales of $2.9 billion, up 9% year over year, with operating profit increasing 20% to $918 million [4] - Electrical Global's sales were $1.6 billion, a 4% increase year over year, with operating profit down 2.5% to $277 million [4] - Aerospace sales reached $971 million, up 9% year over year, with operating profit increasing 11% to $222 million [5] - Vehicle segment sales were $647 million, down 10% year over year, with operating profit decreasing 5.4% to $122 million [5] - eMobility segment sales were $147 million, down 10.9% year over year, but operating profit improved to $3 million from a loss of $16 million in the previous year [6] Expense and Financial Update - Selling and administrative expenses rose 4.9% year over year to $1.003 billion, while research and development expenses remained stable at $201 million [7] - Interest expenses increased significantly by 55.5% year over year to $42 million [7] - As of December 31, 2024, cash was $555 million, up from $488 million a year earlier, while long-term debt rose 2.8% to $8.47 billion [8] Guidance - For the first quarter of 2025, earnings are expected in the range of $2.65-$2.75 per share, with organic growth anticipated between 5.5-7.5% [10] - Adjusted earnings per share for 2025 are projected to be between $11.8-$12.20, indicating an 11% increase at the midpoint from the previous year, with organic sales growth expected in the range of 7-9% [11]