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Eaton Corp PLC (NYSE: ETN) first-quarter FY23 net sales jumped 13% year-over-year to $5.48 billion, +15% on an organic basis, beating the consensus of $5.23 billion.
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Adjusted EPS improved 16% Y/Y to $1.88, beating the consensus of $1.78.
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The quarterly performance was primarily driven by solid backlog growth, particularly in Electrical and Aerospace, which indicates ongoing market demand.
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Total segment operating profit increased by 19% Y/Y to $1.08 billion, and the margin expanded by 97 bps to 19.7%.
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Sales by segments: Electrical Americas $2.3 billion (+21% Y/Y), Electrical Global $1.5 billion (+4% Y/Y), Aerospace $803 million (+12% Y/Y), Vehicle $739 million (+10% Y/Y) and eMobility $147 million (+17% Y/Y).
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Eaton’s operating cash flow in the first quarter was $335 million, and free cash flow was $209 million.
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“We’re confident in our ability to capitalize on growth drivers – including the effects of re-industrialization in North America and the megatrends of electrification, energy transition and digitalization – to deliver on our targets,” Eaton Chairman and Chief Executive Officer Craig Arnold said.
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2Q23 Outlook: Eaton anticipates organic revenue growth of 10%-12% and adjusted EPS of $2.04 – $2.14, versus the consensus of $2.05.
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FY223 Outlook: The company raised its outlook for FY23. Eaton now expects organic growth of 9%-11% from the prior expectation of 7%-9%.
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Eaton expects FY23 adjusted EPS of $8.30-$8.50, up $0.16 at the midpoint, versus the consensus of $8.29 (prior guidance $8.04-$8.44).
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Price Action: ETN shares are trading higher by 1.72% at $171.69 premarket on the last check Tuesday.
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This article Eaton Raises FY23 Outlook After Solid Q1 Beat originally appeared on Benzinga.com
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