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Eaton (ETN) Q4 Earnings: What's in the Cards for the Stock?
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Eaton Corporation (ETN - Free Report) will release fourth-quarter 2016 financial results before the market opens on Feb 2. Last quarter, this power management company reported a positive earnings surprise of 0.88%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Eaton expects fourth-quarter earnings per share in the range of $1.05 to $1.15. Organic revenues are projected to be down nearly 1.5% sequentially.
The company expects organic revenues to fall nearly 4% due to persistently sluggish markets around the world. Negative currency translation is expected to have impact annual revenues to the tune of $225 million.
To cope with the challenging environment, the company has planned a restructuring program. Eaton expects to incur total restructuring cost of $145 million in 2016, which includes $24 million for the fourth quarter. Annual benefits from these initiatives are expected to be $200 million.
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: Eaton has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.10.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Although Eaton’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult this quarter.
Note that 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
Here are some companies in the industrial product sector that have the right combination of elements to post an earnings beat this quarter.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +27.27% and a Zacks Rank #2. It is slated to report fourth-quarter 2016 earnings on Feb 16.
Colfax Corporation has an Earnings ESP of +6.67% and a Zacks Rank #3. It is expected to report fourth-quarter earnings on Feb 2.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Eaton (ETN) Q4 Earnings: What's in the Cards for the Stock?
Eaton Corporation (ETN - Free Report) will release fourth-quarter 2016 financial results before the market opens on Feb 2. Last quarter, this power management company reported a positive earnings surprise of 0.88%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Eaton expects fourth-quarter earnings per share in the range of $1.05 to $1.15. Organic revenues are projected to be down nearly 1.5% sequentially.
The company expects organic revenues to fall nearly 4% due to persistently sluggish markets around the world. Negative currency translation is expected to have impact annual revenues to the tune of $225 million.
To cope with the challenging environment, the company has planned a restructuring program. Eaton expects to incur total restructuring cost of $145 million in 2016, which includes $24 million for the fourth quarter. Annual benefits from these initiatives are expected to be $200 million.
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.
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote
Zacks ESP: Eaton has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.10.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Although Eaton’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult this quarter.
Note that 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
Here are some companies in the industrial product sector that have the right combination of elements to post an earnings beat this quarter.
Cintas Corporation (CTAS - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2. It is slated to report third-quarter fiscal 2017 earnings on Mar 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +27.27% and a Zacks Rank #2. It is slated to report fourth-quarter 2016 earnings on Feb 16.
Colfax Corporation has an Earnings ESP of +6.67% and a Zacks Rank #3. It is expected to report fourth-quarter earnings on Feb 2.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>