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)…