Eaton Corporation's (ETN) operations will thrive on wide market reach and systematic R&D expenditures, which will create new products that are set to help its customers in efficient power management. Reindustrialization and Megatrends are creating more opportunities for the company. This power management solution provider has delivered an average earnings surprise of 4.67% in the last four quarters. Second-Quarter Recap Eaton's second-quarter 2024 earnings of $2.73 per share surpassed the Zacks Consensus Es ...

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Core Insights - Eaton Corporation (ETN) reported second-quarter 2024 earnings of $2.73 per share, exceeding the Zacks Consensus Estimate by 4.6% and reflecting a 24% year-over-year increase, driven by project activity and acquired assets [1] - The company’s total revenues for the quarter were $6.35 billion, slightly missing the Zacks Consensus Estimate by 0.01%, but showing an 8.3% year-over-year growth [3] Financial Performance - GAAP earnings for the quarter were $2.48, a 33% increase from $1.86 in the same quarter last year, with differences attributed to charges related to intangible assets, restructuring, and acquisitions [2] - Selling and administrative expenses rose to $1.02 billion, up 3.5% year over year, while research and development expenses increased to $196 million, up 4.8% year over year [6] Segment Performance - Electrical Americas reported sales of $2.87 billion, a 13.4% increase year over year, with operating profit up 28% to $859 million [4] - Aerospace sales reached $0.95 billion, up 13% year over year, with operating profit increasing by 21.5% to $206 million [4] - Vehicle segment sales decreased by 4% year over year to $0.72 billion, while eMobility sales increased by 18% to $189 million [5] Guidance and Projections - For third-quarter 2024, Eaton expects earnings in the range of $2.73-$2.83 per share, with organic growth projected at 8-9% [8] - The company raised its 2024 adjusted earnings per share guidance to $10.65-$10.75, indicating a 17% increase at the midpoint from the previous year [9] - Operating cash flow estimates for 2024 were increased to $4.2-$4.4 billion, and free cash flow guidance was raised to $3.4-$3.6 billion [10] Financial Position - As of June 30, 2024, Eaton's cash position improved to $540 million from $488 million at the end of 2023, while long-term debt increased to $8.55 billion, up 3.8% from $8.24 billion [7]

For the quarter ended June 2024, Eaton (ETN) reported revenue of $6.35 billion, up 8.3% over the same period last year. EPS came in at $2.73, compared to $2.21 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $6.35 billion, representing a surprise of -0.02%. The company delivered an EPS surprise of +4.60%, with the consensus EPS estimate being $2.61. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock. It is projected by analysts that the 'Net Sales- eMobility' will reach $199.47 million. The estimate suggests a change of +23 ...

Company Performance - Shares of Eaton have depreciated by 6.71% over the past month, underperforming the Industrial Products sector's gain of 2.95% and the S&P 500's loss of 1.16% [1] - The Zacks Consensus Estimates forecast earnings of $10.56 per share and revenue of $25.13 billion for the year, indicating changes of +15.79% and +8.33%, respectively, compared to the previous year [2] - Eaton's stock closed at $297.79, moving +1.68% from the previous trading session, outperforming the S&P 500, which gained 1.11% [6] Analyst Estimates and Ratings - Recent changes to analyst estimates for Eaton reflect shifting dynamics in short-term business patterns, with positive revisions indicating analysts' confidence in the company's performance [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a track record of outperforming, with stocks rated 1 producing an average annual return of +25% since 1988; Eaton currently holds a Zacks Rank of 3 (Hold) [4] - Over the last 30 days, the Zacks Consensus EPS estimate has decreased by 0.01% [4] Valuation Metrics - Eaton is trading at a Forward P/E ratio of 27.74, which is a premium compared to the industry's average Forward P/E of 21.63 [5] - The company has a PEG ratio of 2.45, higher than the industry average PEG ratio of 2.05 [8] Upcoming Earnings - Eaton's upcoming earnings report is set for August 1, 2024, with an expected EPS of $2.61, indicating an 18.1% growth compared to the same quarter last year; revenue is anticipated to be $6.35 billion, reflecting an 8.23% increase from the previous year [7] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 31, placing it in the top 13% of all 250+ industries [8] - The Zacks Industry Rank assesses the strength of industry groups by computing the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [9]

Electrical and Aerospace backlogs remain robust and growing Q2 Earnings Preview Earnings Estimate Eaton recently spent $1 billion to expand its productive capacity and also enacted a recent restructuring program to reduce fixed-oosts and increase efficiency. I expect these two initiatives to continue to drive margin expansion going forward (although not at the same pace exhibited in Q1). Eaton currently trades with a P/E=34.6x, significantly above its historical level and a premium to the S&P500 (28.2x): Re ...

The most recent trading session ended with Eaton (ETN) standing at $327.03, reflecting a -1.04% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.4%. Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.61, reflecting a 18.1% increase from the s ...

The most recent trading session ended with Eaton (ETN) standing at $318.71, reflecting a -0.08% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.14%. Coming into today, shares of the power management company had lost 1.24% in the past month. In that same time, the Industrial Products sector lost 1.42%, while the S&P 500 gained 4.34%. Investors will be eagerly watching for the performance of ...

Shares of Eaton Corporation (ETN) have gained 30.2% year to date compared to its industry's growth of 14.2%. The power management company operates in more than 175 countries across the globe, and an ongoing improvement in the end market conditions is boosting orders and revenues. Organic growth, and continued investment in research and development of new products are assisting the company in providing efficient power management solutions to its clients. Strategic acquisitions are further expanding its marke ...