Eaton Earnings Preview: Analysts Expect Higher EPS, Revenue
Eaton (NYSE: ETN) announces its next round of earnings this Monday, October 24, 2011. Get prepared with Benzinga's ultimate preview for Eaton's third quarter earnings.
Earnings and Revenue:
Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $1.09/share and revenues of $4.2 billion. Eaton's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 80 cents/share on revenues of $3.57 billion. We'll know on Monday whether Eaton has managed the estimated 36.3% increase in EPS and 17.6% rise in revenues on a year-over-year basis.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.95 | $0.80 | $0.83 | $0.69 |
| EPS Actual | $0.97 | $0.84 | $0.85 | $0.80 |
Stock Performance:
Shares of Eaton were trading at $42.32 as of October 18, 2011. Shares are down 14.9% year to date. For a full 12 months, the return has declined by 0.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts for Eaton is a Moderate Buy. The strength of this rating has declined slightly over the past three months.
Competitors:
Want to check out the performance of Eaton closest competitors? Take a look at some of the company's peers in the industrials sector.
- Crane (NYSE: CR): Moderate Buy with a $0.85 recent quarter EPS
- Dover (NYSE: DOV): Hold with a $1.19 recent quarter EPS
- General Electric Company (NYSE: GE): Moderate Buy with a $0.33 recent quarter EPS
- Magnetek (NYSE: MAG): $0.05 recent quarter EPS
Eaton is in the machine industrial industry, which has experienced price/earnings growth of 1%.
Finally, a description of the company's main areas of operation: Eaton is a power management company offering services in the sectors of electricity, hydraulics, aerospace, truck, and automotive.
Take Action:
That's your advanced look at Eaton's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.
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