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 98 cents per share has decreased 11.7% over the last 90 days.
Coming to the earnings surprise, Eaton Corporation has surpassed the Zacks Consensus Estimate in three of the last four quarters, resulting in a positive average surprise of 2.93%.
Zacks Rank: Currently, Eaton has a Zacks Rank#3 (Hold) but that could change following its first quarter 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: Eaton beat on earnings. Our consensus called for first-quarter EPS of 98 cents, and the company reported EPS of $1.01 (these figures take out stock option expenses).
Revenue: Eaton missed the revenue estimates in the first quarter. The company posted revenues of $5,223 million in the first quarter, compared to our consensus estimate of $5,311 million.
Key Stats: Bookings in the Aerospace and Electrical Products segments increased 1% and 5% year over year, respectively. However, Hydraulics market bookings decreased 18% year over year due to greater than expected weakness in Hydraulics business.
Stock Price: It would be interesting to see how the market reacts to the earnings beat during the trading session today.
Check back later for our full write up on this ETN earnings report later!
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