Back to top

Image: Bigstock

Eaton (ETN) to Report Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

Eaton Corporation (ETN - Free Report) is scheduled to release second-quarter 2022 earnings on Aug 2, before the opening bell. The power management company delivered an earnings surprise of 3.5% in the trailing four quarters, on average.

Factors to Note

Eaton’s second-quarter earnings are likely to have benefited from lower shares outstanding than the year-ago level. The ongoing improvement in end-market conditions and organic sales growth are expected to have boosted earnings in the second quarter.

Acquisitions and divestitures, and negative currency translation are likely to have weighed on Eaton’s second-quarter earnings.

Expectations

Eaton expects second-quarter earnings of $1.78-$1.88 per share. ETN anticipates organic revenue growth of 9-11%. The segmental operating margin is expected to be 19.1-19.5% for the quarter.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.82 per share, indicating an improvement of 5.81% 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 +0.04%. 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 also have the right combination of elements to beat on earnings in their upcoming releases.

Terex Corporation (TEX - Free Report) is likely to come up with an earnings beat when it reports second-quarter 2022 results on Aug 3, before market open. It has an Earnings ESP of +3.87% and a Zacks Rank of 3 at present.

Terex’s long-term (three to five years) earnings growth is projected at 16.9%. The Zacks Consensus Estimate for TEX’s 2022 earnings per share indicates year-over-year growth of 22.15%.

MRC Global Inc. (MRC - Free Report) is likely to come up with an earnings beat when it reports second-quarter 2022 results on Aug 8, after market close. It has an Earnings ESP of +10.34% and sports a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for MRC’s 2022 earnings per share indicates year-over-year growth of 259.3%.

Helios Technologies Inc. (HLIO - Free Report) is likely to come up with an earnings beat when it reports second-quarter 2022 on Aug 8, after market close. It has an Earnings ESP of +0.57% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Helios Technologies’ 2022 earnings per share indicates year-over-year growth of 7.06%.

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

Published in