ABB Expects Challenging Quarters But 2Q Beat Forecasts -- Earnings Review
July 22 2020 - 5:48AM
Dow Jones News
By Kim Richters
ABB Ltd. reported results for the second quarter on Wednesday.
Here's what you need to know:
REVENUE: Quarterly revenue declined to $6.15 billion from $7.17
billion, the Swiss engineering company said. This compares to
expectations of $5.61 billion, according to consensus estimates
provided by the company.
OPERATIONAL EBITA: The company's operational earnings before
interest, taxes and amortization fell to $651 million from $825
million for the same period a year earlier. Consensus had forecast
$446 million.
NET INCOME: ABB's net profit increased to $319 million from $64
million the year-earlier period, when it dropped on charges
relating to the sale of its solar-inverter business. Analysts
expected net income of $128 million, according to the
consensus.
WHAT WE WATCHED:
--2Q BETTER THAN EXPECTED: ABB's results showed an impressive
beat, with all metrics better than expected, analysts at Jefferies
said.
--GUIDANCE: ABB expects coming quarters to be challenging. While
on year order decline is expected to improve somewhat in the third
quarter, revenue is likely to recover slightly in the fourth
quarter at best. It forecasts its operational margin to steady on a
sequential basis. Analysts at Citi said the company's outlook
comments continue be "somewhat cautious."
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
July 22, 2020 05:33 ET (09:33 GMT)
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