What caused ETN's EPS surprise in Q1 2024?

ETN's EPS surprise in Q1 2024 was primarily driven by robust growth across its segments and favorable market conditions:

1. Organic Sales Growth: ETN's full-year 2023 sales reached $23.2 billion, marking a 12% increase year-over-year. This organic growth reflects strong market demand and the company's ability to capitalize on industry opportunities.
2. Segment Margin Expansion: The company's segment margins hit a record 22.8% in Q4, improving by 200 basis points from the previous year. This margin expansion indicates improved operational efficiency and profitability.
3. Geographical Insights: The Americas segment, which includes electrical equipment, saw a significant 16% increase in sales, reaching $2.7 billion. This growth is entirely organic, adjusting for currency moves and other items.
4. Aerospace and Vehicle Segments: The aerospace segment experienced notable growth, with sales increasing by 14% to $1.4 billion. The vehicle segment also performed well, with sales rising 7% to $1.9 billion.
5. Free Cash Flow Improvement: ETN reported a significant increase in free cash flow to $1.1 billion in Q4, up 8% from the previous year. This improvement underscores the company's financial health and its ability to generate cash from operations.

In summary, ETN's EPS surprise in Q1 2024 was a result of strong organic sales growth, particularly in its Americas segment, significant margin expansion, and improved free cash flow. These factors collectively contributed to the company's robust financial performance and exceeded market expectations.