ABB Clocks 1% Revenue Growth In Q1; Orders Surge 21%

ABB Ltd ABB reported first-quarter FY22 revenue growth of 1% year-over-year to $6.96 billion, on a comparable basis up 7%, missing the consensus of $7.09 billion.
EPS improved to $0.31 from $0.25 in 1Q21, beating the consensus of $0.26.
Orders increased by 21% Y/Y to $9.37 billion and grew 28% on a comparable basis.
Electrification revenue $3.33 billion (+6% Y/Y), Orders $4.39 billion (+25% Y/Y) and Backlog $6.5 billion (+38% Y/Y).
Motion revenue $1.57 billion (-6% Y/Y), Orders $2.2 billion (+15% Y/Y) and Backlog $4.32 billion (+26% Y/Y).
Process Automation revenue $1.51 billion (+7% Y/Y), Orders $1.69 billion (+2% Y/Y) and Backlog $6.19 billion (+5% Y/Y).
Robotics & Discrete Automation revenue $730 million (-14% Y/Y), Orders $1.31 billion (+56% Y/Y) and Backlog $2.49 billion (+83% Y/Y).
Gross profit improved by 1% to $2.28 billion and the gross margin contracted by 20 bps to 32.7%.
Operating income totaled $857 million (+8% Y/Y), and the margin was 12.3% for the quarter, up by 76 bps.
Operational EBITA was up 4% Y/Y to $997 million, and the margin expanded by 50 bps to 14.3%.
ABB's cash used in operating activities in continuing operations for Q1 was $564 million, compared to cash generated of $523 million a year ago.
2Q Outlook: ABB anticipates the underlying market activity to remain broadly similar compared with the prior quarter. Revenues in Q2 tend to be sequentially stronger in absolute terms.
In FY22, the company expects a steady margin improvement towards the 2023 target of at least 15%.
Price Action: ABB shares traded higher by 2.80% at $32.69 on the last check Thursday.

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ABB Clocks 1% Revenue Growth In Q1; Orders Surge 21%

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