Eaton beats by $0.02, reports revs in-line; guides Q1 EPS below consensus; guides FY17 EPS in-line with midpoint above consensus (71.31)
- Reports Q4 (Dec) earnings of $1.12 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.10; revenues fell 3.8% year/year to $4.87 bln vs the $4.91 bln Capital IQ Consensus. The sales decrease consisted of 3 percent from a decline in organic sales and 1 percent from negative currency translation.
- "Our fourth quarter net income and operating earnings per share were above the midpoint of our guidance despite fourth quarter sales coming in 1 percent lower than our expectations. The shortfall in sales resulted solely from higher negative currency translation due to the rise in the U.S. dollar following the U.S. election. Our organic sales for the quarter came in slightly better than expected, and some segments showed modestly improved order trends.
- Co issues downside guidance for Q1, sees EPS of $0.80-0.90 vs. $0.90 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY17, sees EPS of $4.30-4.60 vs. $4.37 Capital IQ Consensus, representing a 6 percent increase at the midpoint of our guidance in net income per share over 2016 and a 5 percent increase at the midpoint of our guidance in operating earnings per share over 2016," said Arnold. "Our guidance is based on flat organic revenue and negative currency translation of $300 million.