ABB Reports Increased Profit and Revenue in Q4 2023

ABB Ltd. sees strong growth in Q4 2023 with higher profit, revenues, and orders. The company also announces a higher dividend and a new share buyback program, indicating a positive outlook.

Date: 30-01-2025

AI Rating: 7

Financial Performance Overview
ABB Ltd. reported a strong financial performance for the fourth quarter, highlighting several key metrics that could impact investor sentiment.

For the quarter, the company achieved a net income of $987 million, reflecting a growth of 7% compared to the previous year's net income of $921 million. This increase in net income indicates solid profitability and could lead to higher stock valuations.

The company also reported basic earnings per share (EPS) of $0.54, up 7% from the prior year's EPS of $0.50. This positive EPS growth is a good signal for investors, as it suggests strong earnings relative to shares outstanding.

In terms of revenue, ABB’s total reached $8.59 billion, which marks a 4% increase from $8.25 billion in the same quarter of the previous year. The comparable revenue growth rate of 5% further substantiates this positive trend, suggesting that the company can maintain its revenue growth momentum.

Another important factor is the Operational EBITA which increased by 8% year-over-year, reaching $1.43 billion. The improvement in operational EBITA margin to 16.7% from 16.3% indicates that ABB is managing its costs efficiently, enhancing its profitability outlook.

Furthermore, the report details a significant increase in orders, which rose by 6% on a reported basis and 7% on a comparable basis to $8.09 billion. The growth in orders is a positive indicator for future revenue, suggesting strong demand for ABB's products and services.

Additionally, the decision to increase the dividend from CHF 0.87 to CHF 0.90 per share signals confidence from the Board of Directors in the company's financial stability and growth prospects. Share buybacks can also enhance shareholder value by reducing the number of shares outstanding.

Looking ahead, ABB anticipates comparable revenue growth in the mid-single-digit range for 2025, alongside an expected improvement in Operational EBITA margins. This projected stability and growth will likely reassure investors about ABB's future performance.

Stocks: ABB