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Eaton (ETN) Q1 Earnings: Will it Beat Estimates Yet Again?
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We expect Eaton Corporation (ETN - Free Report) to beat earnings estimates when it reports its first-quarter 2017 financial results before the market opens on May 2. The power management company reported a positive earnings surprise in three out of the last four quarters, resulting in an average surprise of 1.56%.
Why a Likely Positive Surprise?
Our proven model shows that Eaton Corporation is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates and Eaton Corporation has the right mix.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The company’s Earnings ESP stands at +2.30%. This is because the Most Accurate estimate is pegged at 89 cents, higher than the Zacks Consensus Estimate of 87 cents. This is a meaningful and leading indicator of a likely positive surprise.
Zacks Rank: Eaton currently carries a Zacks Rank #2. The combination of Eaton’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against stocks with Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
Eaton expects its earnings per share to be between 80–90 cents in first-quarter 2017. Segment margins are expected in the range of 13.6–14%, including restructuring costs.
To cope with the challenging environment, the company had planned a restructuring program. Eaton will continue the program and reap its benefits in the first quarter and throughout 2017.
Eaton continues to invest in R&D development activities to churn out new products and upgrade the existing ones to facilitate effective and easy power management. We expect the new products to help the company secure more orders.
Stocks to Consider
Apart from Eaton Corporation, one can consider few other companies from the Zacks categorized Industrial Product sector that have the right combination of elements to post an earnings beat this quarter.
Colfax Corporation has an Earnings ESP of +10.0% and a Zacks Rank #3. It is expected to report first-quarter earnings on May 5.
Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #3. It is expected to report first-quarter earnings on May 1.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
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Eaton (ETN) Q1 Earnings: Will it Beat Estimates Yet Again?
We expect Eaton Corporation (ETN - Free Report) to beat earnings estimates when it reports its first-quarter 2017 financial results before the market opens on May 2. The power management company reported a positive earnings surprise in three out of the last four quarters, resulting in an average surprise of 1.56%.
Why a Likely Positive Surprise?
Our proven model shows that Eaton Corporation is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates and Eaton Corporation has the right mix.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote
Zacks ESP: The company’s Earnings ESP stands at +2.30%. This is because the Most Accurate estimate is pegged at 89 cents, higher than the Zacks Consensus Estimate of 87 cents. This is a meaningful and leading indicator of a likely positive surprise.
Zacks Rank: Eaton currently carries a Zacks Rank #2. The combination of Eaton’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against stocks with Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
Eaton expects its earnings per share to be between 80–90 cents in first-quarter 2017. Segment margins are expected in the range of 13.6–14%, including restructuring costs.
To cope with the challenging environment, the company had planned a restructuring program. Eaton will continue the program and reap its benefits in the first quarter and throughout 2017.
Eaton continues to invest in R&D development activities to churn out new products and upgrade the existing ones to facilitate effective and easy power management. We expect the new products to help the company secure more orders.
Stocks to Consider
Apart from Eaton Corporation, one can consider few other companies from the Zacks categorized Industrial Product sector that have the right combination of elements to post an earnings beat this quarter.
Deere & Company (DE - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #2. It is expected to report second quarter fiscal 2017 earnings on May 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
Colfax Corporation has an Earnings ESP of +10.0% and a Zacks Rank #3. It is expected to report first-quarter earnings on May 5.
Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #3. It is expected to report first-quarter earnings on May 1.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>