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Eaton (ETN) to Report Q2 Earnings: What's in the Offing?

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Zacks Equity Research
·2 min read
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Eaton Corporation ETN is scheduled to release second-quarter 2020 earnings on Jul 29, before market open. This power management company delivered an earnings surprise of 2.8% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

Eaton implemented cost-management measures in the second quarter, which is likely to have offset volume declines due to weakness in end-markets served caused by the novel coronavirus outbreak.

Eaton expects margin to be down 30% in the second quarter due to the global economic crisis caused by the pandemic. Lower shares outstanding are likely to have had a positive impact on the bottom line.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is 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 and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

Earnings ESP: The company’s Earnings ESP is +1.61%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can also consider the following players from the same industry that too have the right combination of elements to post an earnings beat this time around.

SPX FLOW FLOW has an Earnings ESP of +66.67% and a Zacks Rank #2.

Rexnord Corporation RXN has an Earnings ESP of +19.35% and a Zacks Rank #3.

Regal Beloit Corporation RBC has an Earnings ESP of +9.23% and a Zacks Rank #2.

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Regal Beloit Corporation (RBC) : Free Stock Analysis Report
 
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
 
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Rexnord Corporation (RXN) : Free Stock Analysis Report
 
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