ABB beats top and bottom line estimates; initiates Q1 and FY24 outlook

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Mohamad Faizal Bin Ramli

  • ABB press release (OTCPK:ABBNY): Q4 GAAP EPS of $0.50 beats by $0.02.
  • Revenue of $8.25B (+5.5% Y/Y) beats by $150M.
  • Orders $7.6 billion, 0%; comparable 0%.
  • Operational EBITA $1,333 million; margin 16.3%.
  • Cash flow from operating activities $1,897 million; +176%.
  • Outlook: In the first quarter of 2024, we anticipate a low to mid single digit comparable revenue growth vs. estimated growth of 3.54% Y/Y and the Operational EBITA margin to remain stable or slightly improve Y/Y.
  • In full-year 2024, we expect a positive book-to-bill, comparable revenue growth to be about 5% vs. estimated growth of 3.97% Y/Y and the Operational EBITA margin to slightly improve from the 2023 level of 16.9%.
  • Additional 2024 guidance: ($ in millions, unless otherwise stated) For Q1 2024: Corporate and Other Operational EBITA ~(75M); Non-operating items Acquisition-related amortization ~(55M); Restructuring and related (50M); ABB Way transformation ~(55M).
  • FY 2024: Corporate and Other Operational EBITA ~(300M); Non-operating items Acquisition-related amortization ~(210M); Restructuring and related ~(200M); ABB Way transformation ~(180M); Net finance expenses ~(120M); Effective tax rate ~25%; Capital Expenditures ~(900M).

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