Earnings Preview: Eaton Corp
Eaton Corp (NYSE:ETN) will release its quarterly earnings report on Friday, 2025-05-02. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Eaton Corp to report an earnings per share (EPS) of $2.73.
Anticipation surrounds Eaton Corp's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
In the previous earnings release, the company beat EPS by $0.02, leading to a 0.0% drop in the share price the following trading session.
Here's a look at Eaton Corp's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.81 | 2.80 | 2.61 | 2.29 |
| EPS Actual | 2.83 | 2.84 | 2.73 | 2.40 |
| Price Change % | -0.0% | 1.0% | -6.0% | -2.0% |
Performance of Eaton Corp Shares
Shares of Eaton Corp were trading at $294.37 as of April 30. Over the last 52-week period, shares are down 5.43%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Observations about Eaton Corp
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Eaton Corp.
The consensus rating for Eaton Corp is Neutral, derived from 13 analyst ratings. An average one-year price target of $331.15 implies a potential 12.49% upside.
Comparing Ratings Among Industry Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Emerson Electric, AMETEK and Vertiv Holdings, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Underperform trajectory for Emerson Electric, with an average 1-year price target of $119.2, suggesting a potential 59.51% downside.
- Analysts currently favor an Neutral trajectory for AMETEK, with an average 1-year price target of $187.67, suggesting a potential 36.25% downside.
- Analysts currently favor an Neutral trajectory for Vertiv Holdings, with an average 1-year price target of $106.78, suggesting a potential 63.73% downside.
Overview of Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Emerson Electric, AMETEK and Vertiv Holdings, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Eaton Corp | Neutral | 4.58% | $2.43B | 5.16% |
| Emerson Electric | Underperform | 1.41% | $2.23B | 2.78% |
| AMETEK | Neutral | 1.77% | $644.75M | 4.03% |
| Vertiv Holdings | Neutral | 24.21% | $686.50M | 6.45% |
Key Takeaway:
Eaton Corp ranks in the middle among its peers for revenue growth, with a growth rate of 4.58%. It is at the bottom for gross profit at $2.43B. The company is also at the bottom for return on equity at 5.16%.
About Eaton Corp
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
Breaking Down Eaton Corp's Financial Performance
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Eaton Corp's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 4.58%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Eaton Corp's net margin excels beyond industry benchmarks, reaching 15.56%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Eaton Corp's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.16%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Eaton Corp's ROA excels beyond industry benchmarks, reaching 2.5%. This signifies efficient management of assets and strong financial health.
Debt Management: Eaton Corp's debt-to-equity ratio is below the industry average at 0.53, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Eaton Corp visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.