Seeking Alpha: ABB Surprises, But Definitely Not In The Clear Yet

In a quarter where a lot of well-liked multinational industrial conglomerates have disappointed investors, I suppose it is par for the course that ABB (NYSE:ABB), hardly a well-liked name these days, would actually come in with better-than-expected results. To be sure, there were issues with ABB's results that will linger on (particularly with margins), but the company is stepping up its restructuring efforts and may be able to leverage improving conditions in the utility sector.

ABB still looks undervalued, but there are legitimate reasons why ABB looks that way at a time when companies like 3M (NYSE:MMM) and Honeywell (NYSE:HON) are trading closer to full value. ABB has to demonstrate that it can shore up its margins and live up to its own aggressive projections. While the underlying long-term conditions for automation and power are solid, Siemens (OTCPK:SIEGY), Honeywell, General Electric (NYSE:GE) and emerging rivals will give the company no easy path and ABB can ill-afford unforced errors or operational inefficiency.

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ABB Surprises, But Definitely Not In The Clear Yet