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Eaton Corp. (ETN) Beats Q1 Earnings & Revenue Estimates

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 85 cents per share has decreased by 5.6% 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 3.04%.

Zacks Rank: Currently, Eaton has a Zacks Rank#3 (Hold). 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 surpassed expectations. While our consensus called for first-quarter EPS of 85 cents, the company reported earnings of 88 cents.

Revenue: Eaton’s revenues were higher than estimates in the first quarter. The company posted revenues of $4,813 million in the first quarter, compared with our consensus estimate of $4,773 million.

Key Stats: Bookings in Electrical Systems and Services and Hydraulics segment was down 2% and 10% respectively year over year. However, Electrical Products and Aerospace bookings increased by 2% and 6% respectively year over year.

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 CORP PLC (ETN): Free Stock Analysis Report
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