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Can Eaton (ETN) Keep Its Earnings Beat Streak Alive in Q4?
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Eaton Corporation (ETN - Free Report) is scheduled to release fourth-quarter 2020 earnings on Feb 2, before market open. This power management company delivered an average earnings surprise of 11.9% in the last four quarters.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
Eaton implemented cost-management measures, which are likely to have provided it with some relief amid tepid demand due to weakness in end-markets served. The strategic acquisition completed by the company is likely to have boosted the bottom line in the fourth quarter. Its Electrical Americas segment growth in residential and utility markets is expected to have boosted revenues in the fourth quarter.
Lower shares outstanding are likely to have had a positive impact on the bottom line in the fourth quarter.
Expectation
Due to weakness in end-market conditions, the company’s organic revenues are expected to decline in the range of 5-7% for the fourth quarter.
The Zacks Consensus Estimate for the bottom line for the fourth quarter is pegged at $1.22 per share, indicating a 10.95% decline from the prior-year reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is +2.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Investors can also consider the following players from the same industry that too have the right combination of elements to beat on earnings in the upcoming releases.
A.O. Smith Corporation (AOS - Free Report) is scheduled to report fourth-quarter 2020 earnings on Jan 28. It has an Earnings ESP of +5.29% and a Zacks Rank #3.
Franklin Electric (FELE - Free Report) is likely to come up with a beat when it reports fourth-quarter results. It has an Earnings ESP of +2.91% and a Zacks Rank #2.
Rexnord Corporation is likely to come up with a beat when it reports fourth-quarter results. It has an Earnings ESP of +5.05% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
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Can Eaton (ETN) Keep Its Earnings Beat Streak Alive in Q4?
Eaton Corporation (ETN - Free Report) is scheduled to release fourth-quarter 2020 earnings on Feb 2, before market open. This power management company delivered an average earnings surprise of 11.9% in the last four quarters.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
Eaton implemented cost-management measures, which are likely to have provided it with some relief amid tepid demand due to weakness in end-markets served. The strategic acquisition completed by the company is likely to have boosted the bottom line in the fourth quarter. Its Electrical Americas segment growth in residential and utility markets is expected to have boosted revenues in the fourth quarter.
Lower shares outstanding are likely to have had a positive impact on the bottom line in the fourth quarter.
Expectation
Due to weakness in end-market conditions, the company’s organic revenues are expected to decline in the range of 5-7% for the fourth quarter.
The Zacks Consensus Estimate for the bottom line for the fourth quarter is pegged at $1.22 per share, indicating a 10.95% decline from the prior-year reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below.
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote
Earnings ESP: The company’s Earnings ESP is +2.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Eaton carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors can also consider the following players from the same industry that too have the right combination of elements to beat on earnings in the upcoming releases.
A.O. Smith Corporation (AOS - Free Report) is scheduled to report fourth-quarter 2020 earnings on Jan 28. It has an Earnings ESP of +5.29% and a Zacks Rank #3.
Franklin Electric (FELE - Free Report) is likely to come up with a beat when it reports fourth-quarter results. It has an Earnings ESP of +2.91% and a Zacks Rank #2.
Rexnord Corporation is likely to come up with a beat when it reports fourth-quarter results. It has an Earnings ESP of +5.05% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>