DUBLIN - Eaton (NYSE:ETN) Corporation plc (NYSE:ETN), a global power management company, announced a strong start to 2024 with first-quarter adjusted earnings per share (EPS) of $2.40, surpassing analyst expectations by $0.11 and marking a 28% increase from the first quarter of the previous year. The stock was up 0.49% premarket.
The company's revenue also saw a significant rise, reaching $5.94 billion, which is above the consensus estimate of $5.9 billion and represents an 8% organic sales growth from the same quarter last year.
The firm's segment margins hit a record high of 23.1%, improving by 340 basis points compared to the first quarter of 2023. Eaton's chairman and CEO, Craig Arnold, attributed the robust performance to increased project activity, reindustrialization, and infrastructure spending, which continue to bolster demand for Eaton's solutions.
Looking ahead, Eaton raised its full-year 2024 guidance, projecting organic sales growth between 7-9%, segment margins from 22.8-23.2%, and an EPS range of $8.95 to $9.35, which is a 14% increase at the midpoint over the prior year. The adjusted EPS guidance for the year was also lifted to a range of $10.20 to $10.60, reflecting the same midpoint growth percentage.
For the second quarter of 2024, Eaton anticipates organic growth of 6.5-8.5%, segment margins of 22.4-22.8%, and an EPS between $2.19 and $2.29. The adjusted EPS for Q2 is expected to be between $2.52 and $2.62, which edges above the analyst consensus of $2.50.
Eaton's Electrical Americas segment reported record sales of $2.7 billion, up 17% from the first quarter of 2023, driven by organic growth. The Aerospace segment also saw a record first-quarter sales of $871 million, a 9% increase from the previous year. The Vehicle segment experienced a slight decline of 2%, while the eMobility segment's sales rose by 7%.
The company's financial health was further evidenced by a 42% increase in operating cash flow to $475 million and a 40% rise in free cash flow to $292 million compared to the first quarter of 2023.
Eaton's commitment to sustainable power management and its strategic positioning to capitalize on global electrification and digitalization trends continue to underpin its growth trajectory and investor confidence.
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