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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 2019 earnings on Oct 29, 2019, before the market opens. This power management company delivered a positive earnings surprise of 0.66% in the last reported quarter.

Notably, it delivered average positive earnings surprise of 0.72% in the last four quarters.

Factors to Consider

Eaton expects third-quarter earnings per share in the range of $1.50-$1.60. The company bought back shares worth $440 million during first-half 2019 and the ongoing buyback of shares is likely to have had a positive impact on third-quarter earnings.

Improvement in end-market conditions is likely to have boosted third-quarter organic revenues. During the quarter, it formed a partnership with technology company KPIT, which aided its eMobility segment.

However, negative currency translation is expected to have offset some of the gains from these positive developments.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Eaton this time around. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is -0.53%.

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 #4 (Sell).

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post earnings beat in the to-be-reported quarter.

Sharps Compliance Corp. is slated to release first-quarter fiscal 2020 results on Oct 23. It has an Earnings ESP of +80.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

II-VI Incorporated is slated to release first-quarter fiscal 2020 results on Nov 7. It has an Earnings ESP of +3.33% and a Zacks Rank #3.

Plug Power Inc. (PLUG - Free Report) is slated to release third-quarter 2019 results on Nov 14. It has an Earnings ESP of +58.33% and a Zacks Rank #2.

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