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Benzinga
Benzinga
Business
Akanksha Bakshi

ABB Clocks 1% Revenue Growth In Q1; Orders Surge 21%

  • ABB Ltd (NYSE:ABB) reported first-quarter FY22 revenue growth of 1% year-over-year to $6.96 billion, on a comparable basis up 7%, missing the consensus of $7.09 billion.
  • EPS improved to $0.31 from $0.25 in 1Q21, beating the consensus of $0.26.
  • Orders increased by 21% Y/Y to $9.37 billion and grew 28% on a comparable basis.
  • Electrification revenue $3.33 billion (+6% Y/Y), Orders $4.39 billion (+25% Y/Y) and Backlog $6.5 billion (+38% Y/Y).
  • Motion revenue $1.57 billion (-6% Y/Y), Orders $2.2 billion (+15% Y/Y) and Backlog $4.32 billion (+26% Y/Y).
  • Process Automation revenue $1.51 billion (+7% Y/Y), Orders $1.69 billion (+2% Y/Y) and Backlog $6.19 billion (+5% Y/Y).
  • Robotics & Discrete Automation revenue $730 million (-14% Y/Y), Orders $1.31 billion (+56% Y/Y) and Backlog $2.49 billion (+83% Y/Y).
  • Gross profit improved by 1% to $2.28 billion and the gross margin contracted by 20 bps to 32.7%.
  • Operating income totaled $857 million (+8% Y/Y), and the margin was 12.3% for the quarter, up by 76 bps.
  • Operational EBITA was up 4% Y/Y to $997 million, and the margin expanded by 50 bps to 14.3%.
  • ABB's cash used in operating activities in continuing operations for Q1 was $564 million, compared to cash generated of $523 million a year ago.
  • 2Q Outlook: ABB anticipates the underlying market activity to remain broadly similar compared with the prior quarter. Revenues in Q2 tend to be sequentially stronger in absolute terms.
  • In FY22, the company expects a steady margin improvement towards the 2023 target of at least 15%.
  • Price Action: ABB shares traded higher by 2.80% at $32.69 on the last check Thursday.
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