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Eaton (ETN) Q3 Earnings: Is a Disappointment in the Cards?
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Eaton Corporation (ETN - Free Report) will release third-quarter 2016 financial results before the market opens on Nov 1. Last quarter, this power management company reported in-line earnings. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Eaton expects earnings per share for the third quarter to be in the range of $1.10 to $1.20. Organic revenues are projected to remain flat sequentially.
Weakness in the some of the company’s end-markets is likely to have an adverse impact on its results on a year-over-year basis. Eaton expects organic revenues to decline between 2% and 4%, reflecting persistently sluggish markets around the world. Negative currency translation is expected to have a negative impact of $25 million on third-quarter revenues.
Our proven model does not conclusively show that Eaton is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Most Accurate estimate stands at $1.12 while the Zacks Consensus Estimate is pegged higher at $1.14, resulting in an Earnings ESP of -1.75%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Eaton carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Instead, here are a few players in the industrial product sector that have the right combination of elements to post an earnings beat this quarter.
Ball Corporation has an Earnings ESP of +5.43% and a Zacks Rank #2. It is slated to report third-quarter 2016 earnings on Nov 3.
TASER International Inc. has an Earnings ESP of +20.0% and a Zacks Rank #3. It is expected to report third-quarter earnings on Nov 9.
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Eaton (ETN) Q3 Earnings: Is a Disappointment in the Cards?
Eaton Corporation (ETN - Free Report) will release third-quarter 2016 financial results before the market opens on Nov 1. Last quarter, this power management company reported in-line earnings. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Eaton expects earnings per share for the third quarter to be in the range of $1.10 to $1.20. Organic revenues are projected to remain flat sequentially.
Weakness in the some of the company’s end-markets is likely to have an adverse impact on its results on a year-over-year basis. Eaton expects organic revenues to decline between 2% and 4%, reflecting persistently sluggish markets around the world. Negative currency translation is expected to have a negative impact of $25 million on third-quarter revenues.
EATON CORP PLC Price and EPS Surprise
EATON CORP PLC Price and EPS Surprise | EATON CORP PLC Quote
Earnings Whispers
Our proven model does not conclusively show that Eaton is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Most Accurate estimate stands at $1.12 while the Zacks Consensus Estimate is pegged higher at $1.14, resulting in an Earnings ESP of -1.75%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Eaton carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Instead, here are a few players in the industrial product sector that have the right combination of elements to post an earnings beat this quarter.
NN Inc. has an Earnings ESP of +4.35% and a Zacks Rank #1. It is slated to report third-quarter earnings on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ball Corporation has an Earnings ESP of +5.43% and a Zacks Rank #2. It is slated to report third-quarter 2016 earnings on Nov 3.
TASER International Inc. has an Earnings ESP of +20.0% and a Zacks Rank #3. It is expected to report third-quarter earnings on Nov 9.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>