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Eaton (ETN) to Report Q1 Earnings: What's in the Offing?

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Eaton Corporation (ETN - Free Report) is scheduled to release first-quarter 2022 earnings on May 3, before the opening bell. This power management company delivered an earnings surprise of nearly 7% in the trailing four quarters, on average.

Factors to Note

Eaton’s first-quarter earnings are likely to have benefited from lower shares outstanding than the year-ago level. The ongoing improvement in end-market conditions are expected to have increased the demand for its products, and boosted earnings in the first quarter.

Acquisitions & divestitures might have weighed on Eaton’s first-quarter earnings.

Expectations

Eaton expects first-quarter earnings in the range of $1.55-$1.65 per share. ETN now expects organic revenue growth in the range of 7-9%. Segment operating margin is expected in the range of 18.4-18.8% for the quarter.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.60 per share, indicating an improvement of 11.1% from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model conclusively 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, which is the case here as you will see below.

 

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

Earnings ESP: Eaton has an Earnings ESP of +0.85%. 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 consider the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Chart Industries Inc. (GTLS - Free Report) is likely to come up with an earnings beat when it reports first-quarter 2022 on Apr 29, before the market opens. It has an Earnings ESP of +9.15% and a Zacks Rank of 3, at present.

Chart Industries has a trailing four-quarter earnings surprise of 2.9%, on average. The Zacks Consensus Estimate for GTLS’s 2022 earnings per share indicates year-over-year growth of 80.6%.

Sealed Air Corporation (SEE - Free Report) is likely to come up with an earnings beat when it reports first-quarter 2022 results on May 3, before the market opens. It has an Earnings ESP of +1.09% and a Zacks Rank of 3, at present.

Sealed Air’s long-term (three to five years) earnings growth is projected at 10.6%. The Zacks Consensus Estimate for SEE’s 2022 earnings per share indicates year-over-year growth of 15.5%.

Illinois Tool Works Inc. (ITW - Free Report) is likely to come up with an earnings beat when it reports first-quarter 2022 results on May 3 before the market opens. It has an Earnings ESP of +0.46% and a Zacks Rank of 3, at present.

Illinois Tool Works’ long-term earnings growth is projected at 9.8%. The Zacks Consensus Estimate for ITW’s 2022 earnings per share indicates year-over-year growth of 6.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
 

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