Eaton Slips On This fall Income Miss, Eyes Progress In 2025 – Eaton Corp (NYSE:ETN)

Eaton Company ETN shares are buying and selling decrease on Friday after the corporate reported fourth-quarter 2024 outcomes.

Income rose 5% year-over-year to $6.24 billion, lacking the consensus of $6.34 billion.

Electrical Americas section gross sales rose 9% YoY to $2.9 billion, aided by natural gross sales development. Backlog on the finish of the yr rose 29% organically.

Electrical International section gross sales grew 4% to $1.6 billion within the quarter. Backlog elevated 16% organically.

Notably, Hurricane Helene and labor strikes within the aerospace business negatively impacted gross sales by about $80 million.

Section margins reached 24.7%, an growth of 190 foundation factors YoY. Adjusted EPS rose 11% Y/Y to $2.83, beating the consensus of $2.81.

Working money stream stood at $1.6 billion, and free money stream got here in at $1.3 billion within the quarter.

Craig Arnold, Eaton chairman and chief govt officer, stated, “Our sturdy efficiency in 2024 was a results of strong demand and our group’s profitable execution. We’re assured in that continued momentum into 2025 as Eaton is in a novel place to ship differentiated efficiency amid highly effective megatrends driving greater development in our markets.”

Steerage: For 2025, Eaton initiatives natural development of seven% – 9% and adjusted EPS of $11.80 – $12.20 vs. $12.00 consensus estimate.

For the primary quarter, the corporate expects natural development of 5.5% – 7.5% and adjusted EPS of $2.65 – $2.75, in comparison with the road view of $2.70.

Goldman Sachs analyst Joe Ritchie sees this as an inline fourth-quarter report.

Nonetheless, with sturdy order efficiency and backlog, together with latest share weak spot from DeepSeek information, the analyst anticipates that the inventory will outperform immediately.

Value Motion: ETN shares are down 0.71% at $324.79 on the final examine Friday.

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