UPDATE: Eaton Posts Downbeat Q4 Profit

Eaton ETN reported a 51% drop in its fourth-quarter earnings. Eaton expects Q1 adjusted earnings of $0.70 to $0.80 per share and full-year earnings of $4.05 to $4.45 per share. However, analysts expected Q1 earnings of $0.88 per share and full-year earnings of $4.42 per share. Eaton's quarterly profit fell to $179 million, or $0.46 per share, from $362 million, or $1.07 per share, in the year-ago period. Excluding special items, it earned $0.82 per share. Its sales climbed 7.4% to $4.33 billion. However, analysts were expecting earnings of $0.93 per share on revenue of $4.36 billion. Its operating margin declined to 2% from 9.7%. Eaton shares closed at $56.58 yesterday.