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DUBLIN - Intelligent power management company Eaton Corporation plc (NYSE:ETN) saw its shares jump 3.18% after reporting record fourth quarter earnings that beat analyst estimates and providing an upbeat outlook for 2025.
Eaton posted adjusted earnings per share of $2.83 for Q4 2024, edging past the consensus estimate of $2.82. Revenue came in at $6.2 billion, up 5% year-over-year but slightly below expectations of $6.35 billion.
The company achieved record Q4 segment margins of 24.7%, up 190 basis points from the prior year. Organic sales growth was 6% in the quarter.
"Once again, we delivered on our commitments in the quarter, reporting record segment margins and strong earnings per share," said Craig Arnold, Eaton chairman and chief executive officer.
For the full year 2024, Eaton reported record sales of $24.9 billion, up 7% from 2023. Adjusted earnings per share reached $10.80, an 18% increase over the previous year.
Looking ahead, Eaton provided an optimistic outlook for 2025, forecasting adjusted earnings per share between $11.80 and $12.20. This represents 11% growth at the midpoint compared to 2024 and is in line with analyst expectations of $12.00.
The company also expects organic growth of 7-9% and segment margins of 24.4-24.8% for the full year 2025.
Eaton saw strong order growth in Q4, with Electrical Americas orders up 16% and a book-to-bill ratio of 1.2 on a rolling 12-month basis. Backlog grew 27% in Electrical and 16% in Aerospace year-over-year.
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