Eaton 4Q profit helped by acquisition, tops Street

Published on NewsOK Modified: February 4, 2014 at 11:12 am •  Published: February 4, 2014
Advertisement
;

NEW YORK (AP) — Eaton's fourth-quarter net income more than doubled, continuing to benefit from its acquisition of Cooper Industries.

The power management company earned $479 million, or $1 per share, for the three months ended Dec. 31, down from $179 million, or 46 cents per share, a year ago.

Removing acquisition-related costs, earnings were $1.08 per share. Analysts surveyed by FactSet expected earnings of $1.06 per share.

Revenue for the Irish company rose 28 percent to $5.53 billion from $4.33 billion thanks partly to the Cooper Industries buyout. Wall Street forecast $5.56 billion in revenue.

Eaton purchased electrical components maker Cooper Industries in November 2012 for $11.5 billion.

For the year, Eaton Corp. earned $1.86 billion, or $3.90 per share. That's up from $1.22 billion, or $3.46 per share, in the previous year.

Annual revenue increased 35 percent to $22.05 billion from $16.31 billion.

Looking ahead, Eaton anticipates first-quarter adjusted earnings between 95 cents and $1.05 per share. Full-year adjusted earnings are projected between $4.50 and $4.90 per share.

Analysts expect first-quarter earnings of $1.03 per share and 2014 earnings of $4.90 per share — both at the high end of the company's guidance.

Shares of Eaton fell $2.44, or 3.5 percent, to $67.83 in midday trading Tuesday as the broader market was mixed following its biggest one-day slump in more than seven months Monday. Eaton shares are up 19 percent for the past year.