ABB Ltd. Earnings: Here’s Why Investors Like These Results

ABB Ltd. (NYSE:ABB) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.58%.

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ABB Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.33% to $0.29 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 9.07% to $9.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: ABB Ltd. reported adjusted EPS income of $0.29 per share. By that measure, the company missed the mean analyst estimate of $0.33. It beat the average revenue estimate of $9.63 billion.

Quoting Management: CEO Joe Hogan commented on the deal, “Solar PV is becoming a major force reshaping the future energy mix because it is rapidly closing in on grid parity. Power-One is a well-managed company and is highly regarded as a technology innovator focusing on the most attractive and intelligent solar PV product. The combination of Power-One and ABB is fully in line with our 2015 strategy and would create a global player with the scale to compete successfully and create value for customers, employees and shareholders.”

Key Stats (on next page)…

Revenue decreased 11.85% from $11.02 billion in the previous quarter. EPS increased 11.54% from $0.26 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0 to a profit $0.39. For the current year, the average estimate has moved up from a profit of $1.51 to a profit of $1.53 over the last ninety days.

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

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