Eaton Corporation plc (ETN - Free Report) , a diversified power management firm, is best known for its electrical components, systems and services. This Dublin, Ireland-based company has presence across the globe.
Eaton’s continuous focus on strategic acquisitions and debt reduction initiatives backed by stable cash generating capacity, geographically-diversified operations, and systematic investments in research and development activities to launch new products will likely boost its future performance.
However, owing to the nature of this industry, Eaton’s operation depends on numerous suppliers of raw materials. Any shortage of raw materials, price increase or supplier’s insolvencies can increase the company’s operating costs.
Estimate Trend & Surprise History
Investors should note that the second quarter Zacks Consensus Estimate for earnings of $1.16 per share has increased by nearly 0.9% over the last 90 days.
Coming to the earnings surprise, Eaton Corporation has surpassed the Zacks Consensus Estimate in the last four quarters, resulting in a positive average surprise of 3.26%.
Zacks Rank: Currently, Eaton has a Zacks Rank#2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
We have highlighted some of the key details from the just-released announcement below:
Earnings: Eaton’s earnings were lower than expectations. Zacks consensus called for second-quarter EPS of $1.16 and the company reported earnings of $1.15.
Revenue: Eaton’s revenues were lower than estimates in the second quarter. The company posted revenues of $5,132 million in the second quarter, compared with Zacks consensus estimate of $5,140 million.
Key Stats: Bookings in Electrical Systems and Services was down 2% year over year. Hydraulics segment orders were up 32% year over year. Bookings in Electrical Products and Aerospace segment were up by 3% and 12% year over year respectively.
Stock Price: It would be interesting to see how the market reacts to the negative earnings surprise during the trading session today.
Check back later for our full write up on this ETN earnings report later!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>