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Eaton (ETN) to Report Q4 Earnings: What's in the Cards?

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Eaton Corporation (ETN - Free Report) is scheduled to release fourth-quarter 2019 earnings on Feb 4, 2020, before market open.

This power management company delivered a positive earnings surprise of 0.66% in the last reported quarter. It pulled off positive earnings surprise of 1.06%, on average, in the last four quarters.

Eaton expects fourth-quarter earnings per share in the range of $1.36-$1.46. The Zacks Consensus Estimate for the quarter is pegged at $1.40 per share, which reflects a decline of 4.11% from the year-ago reported number.

Factors at Play

The company bought back shares worth $978 million during the first nine months 2019. It continued to repurchase shares in the fourth quarter, which is likely to have boosted its earnings.

During the fourth quarter, Eaton continued with its initiatives to transform the company and concentrate more on core operations. It acquired Souriau-Sunbank Connection Technologies in the quarter. This are likely to reflect positively on its upcoming results.

Weaker end market conditions are likely to have negatively impacted organic revenue growth in the to-be-reported quarter. In addition, negative currency translation is expected to have weighed on Eaton.

What Our Model Unveils

Our proven model does not conclusively predict an earnings beat for Eaton this time around. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. 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 price-eps-surprise | Eaton Corporation, PLC Quote

Earnings ESP: The company’s Earnings ESP is -1.23%.

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.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post earnings beat this earnings season.

Tennant Company (TNC - Free Report) is slated to release fourth-quarter 2019 results on Feb 20. It has an Earnings ESP of +4.20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Valmont Industries Inc. (VMI - Free Report) is slated to release fourth-quarter 2019 results on Feb 19. It has an Earnings ESP of +2.93% and a Zacks Rank #2.

Plug Power Inc. (PLUG - Free Report) is slated to release fourth-quarter 2019 results on Mar 5. It has an Earnings ESP of +8.33% and a Zacks Rank #3.

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