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Eaton (ETN) to Report Q3 Earnings: What's in the Offing?

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Eaton Corporation (ETN - Free Report) is scheduled to release third-quarter 2022 earnings on Nov 1, before the opening bell. The power management company delivered an earnings surprise of 1.44% in the trailing four quarters on average.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note

Eaton’s third-quarter earnings are likely to have benefited from lower shares outstanding than the year-ago level. The ongoing improvement in end-market conditions and organic sales growth are expected to have boosted earnings in the third quarter.

Acquisitions and divestitures, and negative currency translation are likely to have weighed on Eaton’s third-quarter earnings. An increase in corporate expenses is likely to offset some positives in the third quarter.

Expectations

Eaton expects third-quarter earnings of $1.95-$2.05 per share. It anticipates organic revenue growth of 13-15%. The segmental operating margin is expected to be 20.6-21% for the quarter.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.01 per share, indicating an improvement of 14.9% from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict 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. This is not the case here, as you will see below.

Eaton Corporation, PLC Price and EPS Surprise

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 -0.38%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can consider the following players from the same sector that also have the right combination of elements to beat on earnings in their upcoming releases.

AGCO Corporation (AGCO - Free Report) is likely to come up with an earnings beat when it reports third-quarter 2022 results on Nov 1. It has an Earnings ESP of +1.96% and a Zacks Rank #3 at present.

AGCO’s long-term (three to five-year) earnings growth is projected at 9.58%. The Zacks Consensus Estimate for AGCO’s 2022 earnings per share indicates year-over-year growth of 14.26%.

Titan International Inc. is likely to come up with an earnings beat when it reports third-quarter 2022 results on Nov 7. It has an Earnings ESP of +9.28% and currently has a Zacks Rank #3.

The Zacks Consensus Estimate for TWI’s 2022 earnings per share indicates year-over-year growth of 156.5%.

TPI Composites, Inc. (TPIC - Free Report) is likely to come up with an earnings beat when it reports third-quarter 2022 on Nov 3, after market close. It has an Earnings ESP of +22.22% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for TPI Composites’ 2022 earnings per share indicates year-over-year growth of 50.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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