Eaton Raises FY22 Outlook On Solid Q2 Results

Eaton Corp PLC ETN reported second-quarter net sales were flat year-over-year at $5.212 billion, +11% on an organic basis, marginally beating the consensus of $5.21 billion.
Adjusted EPS improved 8.7% Y/Y to $1.87, beating the consensus of $1.82.
Total segment operating profit increased by 7.7% Y/Y to $1.05 billion, and the margin expanded by 145 bps to 20.1%.
Sales by segments: Electrical Americas $2.1 billion (+15% Y/Y), Electrical Global $1.5 billion (+5% Y/Y), Aerospace $742 million (+19% Y/Y), Vehicle $708 million (+5% Y/Y) and eMobility $136 million (+55% Y/Y).
Eaton’s operating cash flow in the second quarter was $340 million, and free cash flow was $201 million. It held cash of $623 million as of June 30, 2022.
3Q22 Outlook: Eaton anticipates organic revenue growth of 13%-15% and adjusted EPS of $1.95 - $2.05, vs. the consensus of $1.99.
FY22 Outlook, raised: The company now expects organic growth of 11%-13% from prior expectation of 9%-11%.
ETN expects FY22 adjusted EPS of $7.36 - $7.76 (prior $7.32 -$7.72) versus the consensus of $7.49.
Price Action: ETN shares are trading higher by 1.36% at $149.51 on the last check Tuesday.

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