Eaton Corp. plc's net income rose 24.8% in the fourth quarter of 2017 from a year earlier as organic sales growth beat expectations.
The company reported net income of $634 million, or $1.43 per share, for the fourth quarter of 2017, up from $504 million, or $1.12 per share, in the year-ago quarter. The S&P Capital IQ consensus GAAP EPS estimate for the quarter was $1.03.
The company said its fourth-quarter results include income of $62 million related to the enactment of the new U.S. tax law.
Net sales increased 7.1% year over year to $5.21 billion from $4.87 billion in the year-ago quarter, consisting of organic sales growth of 5% and an increase of 2% from positive currency translation. Sales grew 5.6% year over year in the electrical products segment and were up 3.0% in the electrical systems and services segment.
Eaton Chairman and CEO Craig Arnold said revenues came in at the high end of the company's guidance range and organic sales growth was above expectations.
Total segment operating profit was $857 million for the quarter, up from $711 million in the prior-year period. Operating profit of the electrical products segment increased to $330 million from $316 million, and the electrical systems and services segment posted an operating profit of $225 million, up from $177 million in the year-ago quarter.
For full-year 2017, net income was $2.99 billion, or $6.68 per share, up from $1.92 billion, or $4.20 per share, in 2016 and above S&P Capital IQ's consensus GAAP EPS estimate of $6.28 for the year.
Eaton expects net income per share and adjusted EPS to be in the range of $5.00 to $5.20 for full-year 2018 and organic revenue growth of about 4% for the year. For the first quarter of 2018, net income per share and adjusted EPS are projected to be between $1.00 and $1.10.
