Eaton (ETN) Tops Q4 EPS by 7c; $3B Buyback Plan

Eaton (NYSE: ETN) reported Q4 EPS of $1.17, $0.07 better than the analyst estimate of $1.10. Revenue for the quarter came in at $5.1 billion versus the consensus estimate of $5.1 billion.

GUIDANCE:

Eaton sees FY2016 EPS of $4.15-$4.45, versus the consensus of $4.24.

Announces Expanded $400 Million Restructuring Program and $3 Billion Share Repurchase Plan.

Alexander M. Cutler, Eaton chairman and chief executive officer, said, “Our earnings came in above the high end of our guidance range. Organic sales in the fourth quarter declined by 4 percent compared to the fourth quarter of 2014, reflecting weakness in most of our markets. The impact of currency translation reduced sales by 5 percent.

“In light of the challenging markets, we were pleased with our performance in the quarter,” said Cutler. “We slightly exceeded our revenue guidance, achieved record fourth quarter segment margins, lowered our structural costs, generated operating cash flow of $742 million, and repurchased $228 million of our shares. Our record segment margins of 16.0 percent reflect the positive impact of the significant restructuring actions we initiated in the third quarter of 2015.”

For earnings history and earnings-related data on Eaton (ETN) click here.

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