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Eaton (ETN) Tops on Q3 Earnings, Revenues Miss The Mark

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Eaton Corporation plc (ETN - Free Report) , a diversified power management firm, is best known for its electrical components, systems and services. This Dublin, Ireland-based company has presence across the globe.

Eaton’s continuous focus on strategic acquisitions and debt reduction initiatives backed by stable cash generating capacity, geographically-diversified operations, and systematic investments in research and development activities to launch new products will likely boost its future performance.

However, owing to the nature of this industry, Eaton’s operation depends on numerous suppliers of raw materials. Any shortage of raw materials, price increase or supplier’s insolvencies can increase the company’s operating costs.

EATON CORP PLC Price and EPS Surprise

 

 

EATON CORP PLC Price and EPS Surprise | EATON CORP PLC Quote

Estimate Trend & Surprise History

Investors should note that the third quarter Zacks Consensus Estimate for earnings of $1.14 per share has increased by nearly 0.9% over the last 60 days.

Coming to the earnings surprise, Eaton Corporation has surpassed the Zacks Consensus Estimate in two out of the last four quarters, resulting in a positive average surprise of 2.72%.

Zacks Rank: Currently, Eaton has a Zacks Rank#4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Eaton’s earnings were higher than expectations. Zacks consensus called for third-quarter EPS of $1.14 and the company reported earnings of $1.15.

Revenue: Eaton’s revenues were lower than estimates in the third quarter. The company posted revenues of $4,987 million in the third quarter, compared with Zacks consensus estimate of $5,048 million.

Key Stats: Bookings in Electrical Systems and Services and Hydraulics segment was down 5% and 3% respectively year over year. Bookings in Electrical Products were also down by 1% year over year. However, Aerospace segment bookings improved by 15% year over year.

Stock Price: It would be interesting to see how the market reacts to the positive earnings surprise during the trading session today.

Check back later for our full write up on this ETN earnings report later!

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