Eaton (NYSE: ETN) reported Q3 EPS of $1.18, $0.14 better than the analyst estimate of $1.04. Revenue for the quarter came in at $4.5 billion versus the consensus estimate of $4.21 billion.

• Adjusted Earnings Per Share of $1.18 for the Third Quarter Excluding Charges of $0.05 Per Share Related to Acquisitions and Divestitures and $0.02 Per Share Related to Multi-Year Restructuring Program
• Reaffirming Midpoint and Narrowing Full Year Free Cash Flow Guidance to Between $2.4 Billion and $2.6 Billion

Craig Arnold, Eaton chairman and chief executive officer, said, “Our third quarter was stronger than expected, with organic sales down 9 percent, 6 percent better than the midpoint of our guidance range and up 16 percent over the second quarter. We are pleased with our solid results despite the impact of the COVID-19 pandemic.”

“Third quarter segment margins were 17.6 percent, a decremental margin of 25 percent,” said Arnold. “Our decremental margin performance was at the low end of our guidance range. This is a result of strong execution and continued focus on cost controls to offset pandemic-driven volume declines.”

“Operating cash flow in the third quarter was $921 million, and free cash flow was $832 million,” said Arnold. “Our operating cash flow over the last nine months has totaled $2.0 billion, and free cash flow has totaled $1.7 billion. We remain on track to achieve the midpoint of our guidance for 2020 full year free cash flow, which we are narrowing to between $2.4 billion and $2.6 billion.”

“We repurchased $177 million of our shares in the third quarter, making our year-to-date repurchases a total of $1.5 billion,” said Arnold. “For the full year 2020, we continue to target share repurchases of between $1.7 billion and $1.9 billion.”

“The outlook for the fourth quarter remains uncertain due to how the on-going pandemic will impact activity levels in North America and Europe,” said Arnold. “Having said that, most of our businesses are showing good momentum and we remain optimistic the momentum will continue through the end of the year.”

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