Eaton Corp. (ETN) Beats on Q4 Earnings, Misses Revenues - Tale of the Tape
Eaton Corporation plc (ETN), 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 Eaton has seen a flat track record when it comes to estimate revisions over the past few weeks as there were no revisions on either side. The company currently has a Zacks Rank #3 (Hold).
Coming to the earnings surprise, Eaton has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 1.94%.
Going further things could definitely change given the company’s recently released earnings results. Going below we have mentioned some of the vital information from this just-revealed announcement:
Earnings: Eaton surpassed in the fourth quarter by 7 cents. Our consensus called for fourth-quarter EPS of $1.20, and the company reported EPS of $1.27 (these figures take out stock option expenses).
Revenue: Eaton missed the revenue estimates in the fourth quarter. The company posted revenues of $5,565 million in the fourth quarter, compared to our consensus estimate of $5,599 million.
Key Stats to Note: Bookings in the Aerospace and Electrical Products segments increased 6% and 4% year over year, respectively. However, Hydraulics market bookings decreased 3% year over year due to weakness in agricultural equipment globally and construction equipment in China.
Stock Price: Shares were up almost 2.1% ahead of the report and remained inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this ETN earnings report later!
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EATON CORP PLC (ETN): Free Stock Analysis Report
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