We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eaton (ETN) to Post Q2 Earnings: What to Expect for the Stock
Read MoreHide Full Article
Eaton Corporation (ETN - Free Report) is scheduled to release second-quarter 2021 earnings on Aug 3, before market open. This power management company delivered an earnings surprise of 16.8% in the last four quarters, on average.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
Eaton’s second-quarter earnings are likely to have benefited from lower shares outstanding compared with the last-year levels. The rollout of vaccines and an improvement in end-market conditions are expected to have increased demand for its products and boosted earnings.
Eaton completed the acquisition of Tripp Lite, Green Motion and a 50% stake in HuanYu High Tech at the end of the first quarter. Synergies drawn from these acquired assets are expected to have contributed to earnings in the second quarter .The company’s June-quarter numbers are also expected to have gained from its cost-savings initiatives and the ongoing restructuring program.
Expectation
Eaton’s second-quarter earnings are expected in the range of $1.45-$1.55 per share. It now expects organic revenue growth in the range of 24-28%. The company also anticipates a positive currency translation to add 2% to its second-quarter earnings. Segment operating margin is expected in the range of 17.5-17.9% for the quarter.
The Zacks Consensus Estimate for the second-quarter bottom line is pegged at $1.55 per share, indicating a 121.4% increase from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below.
Earnings ESP: Eaton has an Earnings ESP of +2.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Regal Beloit Corporation (RBC - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Jul 28 after the market closes. It has an Earnings ESP of +1.47% and a Zacks Rank of 2 at present.
Illinois Tool Works Inc. (ITW - Free Report) is likely to deliver an earnings beat when it reports second-quarter results on Jul 30. It has an Earnings ESP of +1.98% and a Zacks Rank #3, currently.
Kennametal Inc. (KMT - Free Report) is likely to pull off an earnings beat when it reports fourth-quarter fiscal 2021 earnings on Aug 2 after the market closes. It has an Earnings ESP of +6.78% and a Zacks Rank of 2, presently.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eaton (ETN) to Post Q2 Earnings: What to Expect for the Stock
Eaton Corporation (ETN - Free Report) is scheduled to release second-quarter 2021 earnings on Aug 3, before market open. This power management company delivered an earnings surprise of 16.8% in the last four quarters, on average.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
Eaton’s second-quarter earnings are likely to have benefited from lower shares outstanding compared with the last-year levels. The rollout of vaccines and an improvement in end-market conditions are expected to have increased demand for its products and boosted earnings.
Eaton completed the acquisition of Tripp Lite, Green Motion and a 50% stake in HuanYu High Tech at the end of the first quarter. Synergies drawn from these acquired assets are expected to have contributed to earnings in the second quarter .The company’s June-quarter numbers are also expected to have gained from its cost-savings initiatives and the ongoing restructuring program.
Expectation
Eaton’s second-quarter earnings are expected in the range of $1.45-$1.55 per share. It now expects organic revenue growth in the range of 24-28%. The company also anticipates a positive currency translation to add 2% to its second-quarter earnings. Segment operating margin is expected in the range of 17.5-17.9% for the quarter.
The Zacks Consensus Estimate for the second-quarter bottom line is pegged at $1.55 per share, indicating a 121.4% increase from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below.
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote
Earnings ESP: Eaton has an Earnings ESP of +2.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Eaton carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Regal Beloit Corporation (RBC - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Jul 28 after the market closes. It has an Earnings ESP of +1.47% and a Zacks Rank of 2 at present.
Illinois Tool Works Inc. (ITW - Free Report) is likely to deliver an earnings beat when it reports second-quarter results on Jul 30. It has an Earnings ESP of +1.98% and a Zacks Rank #3, currently.
Kennametal Inc. (KMT - Free Report) is likely to pull off an earnings beat when it reports fourth-quarter fiscal 2021 earnings on Aug 2 after the market closes. It has an Earnings ESP of +6.78% and a Zacks Rank of 2, presently.