Eaton Corporation (ETN) Beats on Q1 Earnings, Orders Up Y/Y
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 the first quarter Zacks Consensus Estimate for earnings of 87 cents per share has decreased by nearly 2.2% 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 1.56%.
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote
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 higher than expectations. Zacks consensus called for first-quarter EPS of 87 cents and the company reported earnings of 96 cents.
Revenue: Eaton’s revenues were higher than estimates in the first quarter. The company posted revenues of $4,848 million in the first quarter, compared with Zacks consensus estimate of $4,688 million.
Key Stats: Bookings in Electrical Systems and Services was flat year over year. Hydraulics segment orders were up 22% year over year. Bookings in Electrical Products and Aerospace segment were up by 3% and 2% year over year respectively.
Stock Price: It would be interesting to see how the market reacts to the positive earnings surprise during the trading session today.
Check back later for our full write up on this ETN earnings report later!
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Eaton Corporation, PLC (ETN): Free Stock Analysis Report
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