ABB Ltd. Earnings: Here’s Why Investors are Happy Now

ABB Ltd. (NYSE:ABB) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.65%.

ABB Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.26 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Rose 4.26% to $11.02 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: ABB Ltd. reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.36. It missed the average revenue estimate of $11.21 billion.

Quoting Management: “We’ve made substantial investments recently to increase Power Systems’ potential for value creation,” said Joe Hogan, ABB’s CEO. “However, Power Systems has not generated consistent returns. This is not acceptable; therefore we are recalibrating the growth, profitability and cash return ambitions for this division.”

Key Stats (on next page)…

Revenue increased 13.09% from $9.75 billion in the previous quarter. EPS decreased 21.21% from $0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. For the current year, the average estimate has moved down from a profit of $1.29 to a profit of $1.23 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]