On Jan. 23, Eaton Corporation
- The company's sales growth of 8% in the fourth quarter consisted of 5% organic growth and 4% from acquisitions, offset by a 1% decline caused by exchange rates.
- Eaton will be increasing its quarterly dividend by 13%, from $0.31 per share to $0.35 per share.
- The company anticipates EPS to be between $1.20 and $1.30 for the first quarter of 2006.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2005 |
Q4 2004 |
% Change |
|
|---|---|---|---|---|
|
Sales |
$ 2,850 |
$2,838 |
$2,633 |
+7.8% |
|
Net Profit |
-- |
$210 |
$183 |
+14.8% |
|
EPS |
$1.37 |
$1.38 |
$1.16 |
+19.0% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2005 |
Q4 2004 |
Change |
|
|---|---|---|---|
|
Gross Margin |
27.45% |
27.88% |
-0.43% |
|
Op. Margin* |
9.37% |
8.13% |
+1.25% |
|
Net Margin |
7.40% |
6.95% |
+0.45% |
*The company reports operating earnings excluding restructuring charges. We have calculated operating earnings as earnings before interest and taxes.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2005 |
Q4 2004 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$336 |
$296 |
+13.5% |
|
Inventory |
$1,099 |
$966 |
+13.8% |
|
Accounts Rec. |
$1,785 |
$1,612 |
+10.7% |
|
Liabilities |
Q4 2005 |
Q4 2004 |
% Change |
|---|---|---|---|
|
Long-Term Debt |
$1,830 |
$1,734 |
+5.5% |
|
Accounts Pay. |
$810 |
$776 |
+4.4% |
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Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: The Income Statement
- Foolish Fundamentals: Inventory
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, John Reeves did not own shares in any of the companies mentioned. Fool rules are here.
