Eaton Corporation plc (ETN), headquartered in Dublin, Ireland, is a global power management company, manufacturing engineered products for the industrial, vehicle, construction, commercial, and aerospace markets. Valued at $134.4 billion by market cap, the company provides electrical components, hydraulic systems, aerospace products, vehicle components like transmissions and hybrid power systems as well as electric vehicle solutions such as high-voltage inverters and converters. The power management giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Thursday, Feb. 6.
Ahead of the event, analysts expect ETN to report a profit of $2.82 per share on a diluted basis, up 10.6% from $2.55 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect ETN to report EPS of $10.79, up 18.3% from $9.12 in fiscal 2023. Its EPS is expected to rise 12.1% year over year to $12.09 in fiscal 2025.
ETN stock has outperformed the S&P 500’s ($SPX) 22.1% gains over the past 52 weeks, with shares up 40.5% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 19.9% gains over the same time frame.
Eaton’s outperformance is driven by its strategic alignment with global megatrends like electrification, energy transition, and digitalization, as well as strong R&D, increasing demand from AI data centers, and strategic acquisitions, further boosted by the execution of a savvy regional manufacturing strategy. Additionally, its $1.5 billion capacity investments, along with its partnership with Tesla, Inc. (TSLA) to enhance home energy storage solutions, has reinforced Eaton’s position in the growing residential market.
On Oct. 31, ETN shares closed down more than 3% after reporting its Q3 results. Its revenue was $6.35 billion, fell short of Wall Street forecasts of $6.37 billion. The company’s adjusted EPS of $2.84, surpassed analyst estimates of $2.80. For Q4, ETN expects adjusted EPS to be between $2.78 and $2.84. It expects full-year adjusted EPS to be between $10.75 and $10.81.
Analysts’ consensus opinion on ETN stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, 12 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and six give a “Hold.” ETN’s average analyst price target is $382.95, indicating a potential upside of 12.6% from the current levels.
On the date of publication,
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.
More news from Barchart