Latest news with #ETN
Yahoo
4 days ago
- Business
- Yahoo
What does the FCA's new crypto ETN policy mean for retail investors?
The UK's Financial Conduct Authority (FCA) has announced a crypto policy reversal. From 8 October 2025, retail investors will once again be able to buy crypto exchange-traded notes (ETNs). The rollout will begin with bitcoin (BTC-USD) and other approved digital assets, through FCA-regulated Recognised Investment Exchanges (RIEs). The decision ends a four-year ban that had cut off ordinary UK investors from tax-efficient, exchange-listed crypto exposure. Read more: Crypto live prices When the FCA banned retail access to crypto ETNs in January 2021, it cited extreme volatility in the crypto market and a lack of public understanding of these products. At the time, bitcoin was grouped with other highly speculative cryptocurrency tokens. Since then, however, bitcoin has matured as an asset class. Since January 2021, when bitcoin was trading at around $29,000, the cryptocurrency has surged more than 325%, reaching a record high above $124,000 on 14 August. The rally has been fuelled by a combination of institutional adoption, the launch of US spot Bitcoin ETFs, and a more supportive regulatory backdrop in key markets. According to the FCA's consumer research roughly 12% of UK adults, around 7 million people, own some form of cryptocurrency, up from 4% in 2021. This demonstrates a growing familiarity with digital assets among retail investors, which likely influenced the FCA's decision to reintroduce crypto ETNs. Read more: What are bitcoin ETNs? David Geale, the FCA's executive director of payments and digital finance, said the cryptocurrency market has 'become more mainstream and better understood.' He added that the FCA aims to give consumers more choice while putting protections in place so investors can assess whether the level of risk is appropriate for them. What is an exchange-traded note? An exchange traded note, or ETN, is a stock exchange-listed debt instrument that tracks the price of an underlying asset such as bitcoin but does not require the issuer to actually hold that asset. This allows investors to gain price exposure without directly owning cryptocurrency or managing a digital wallet. ETNs can be bought and sold through standard brokerage accounts and, in some cases, held in tax-advantaged accounts such as ISAs. Read more: Bullish stock ends first day at $70 with 90% gain, giving crypto exchange market cap above $10bn However, because ETNs are unsecured debt obligations, investors are exposed not only to the underlying crypto's price volatility but also to the creditworthiness of the issuing institution. If the issuer fails, investors risk losing their investment entirely, and ETNs do not benefit from Financial Services Compensation Scheme (FSCS) protection. The FCA has chosen to reintroduce ETNs rather than exchange-traded funds (ETFs). While ETFs also provide one-to-one price exposure to an asset, they are physically backed, meaning the underlying asset is purchased and held by the issuer. This structure reduces counterparty risk and is why ETFs are widely used for gold, stock indices, and other assets. By allowing ETNs only, the FCA could be taking a cautious approach while still opening the door for regulated retail crypto investment. For UK investors, this change removes a barrier to mainstream participation in crypto markets. Retail traders can now access regulated bitcoin exposure without using offshore exchanges or managing private wallets. Nevertheless, the FCA is enforcing strict promotional and conduct rules to ensure that investors are provided with clear, accurate information and are not encouraged to take inappropriate risks amid an evolving crypto market. Read more: Why pension funds are buying bitcoin What is a spot bitcoin ETF and why has it sparked a crypto rally? How AI could change the internetError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
05-08-2025
- Automotive
- Reuters
Eaton lowers 2025 profit forecast, shares fall
Aug 5 (Reuters) - Power management company Eaton Corp (ETN.N), opens new tab lowered its annual profit forecast on Tuesday, even as it beat second-quarter results, sending its shares down about 5% before the bell. The company, which makes electrical components and wiring, has been benefiting from strong demand for data center construction amid the global rush to adopt artificial intelligence. However, sales in its vehicles segment, under which Eaton makes powertrain systems and components for both light and commercial vehicles, fell 8% to $663 million in the second quarter. For the full year, Eaton expects organic sales to decline by 7% to 9% in the segment. Eaton, whose customers include companies in the aerospace, vehicle, machine building and utility industries, expects 2025 adjusted profit between $11.97 and $12.17 per share, compared with an earlier forecast of $11.80 and $12.20. It posted second-quarter adjusted profit of $2.95 per share, compared with analysts' average estimate of $2.92, according to data compiled by LSEG. Total revenue for the quarter ended June was $7.03 billion, surpassing estimates of $6.91 billion.
Forbes
04-08-2025
- Business
- Forbes
Will Q2 Results Move Eaton's Stock Up?
Eaton Corp (NYSE: ETN) is a multifaceted industrial company focusing on smart power management, assisting customers in utilizing electrical, mechanical, and hydraulic power more efficiently and sustainably. It is scheduled to announce its second-quarter earnings on Tuesday, August 5, 2025, with analysts forecasting adjusted earnings of $2.92 per share on revenue of $6.91 billion. This would indicate a 7% increase in earnings year-over-year and a 9% rise in sales compared to the previous year's figures of $2.73 per share and $6.35 billion in revenue. Historically, ETN stock has displayed a propensity to exceed performance expectations following earnings releases, having risen 58% of the time with a median one-day increase of 3.6% and a maximum observed surge of 8%. Eaton delivered impressive Q1 2025 results, with revenue increasing 7.3% to $6.38 billion and a 9% organic growth rate, driven by strength in the Electrical and Aerospace segments. Adjusted EPS climbed 13% to a record $2.72, while segment margins reached 23.9%. The company has elevated its full-year guidance, anticipating 7.5–9.5% organic growth and adjusted EPS of $11.80–12.20. The company currently has a market capitalization of $151 billion. Over the past twelve months, revenue has been $25 billion, and it has been operationally profitable with $4.8 billion in operating profits and net income of $3.9 billion. While the outcome will largely depend on how results measure up against consensus and expectations, recognizing historical trends may tilt the odds in your favor if you are trading on events. For event-driven traders, historical patterns can provide a competitive advantage, whether by positioning before earnings or reacting to movements post-release. If you are looking for upside with lower volatility than individual stocks, the Trefis High Quality portfolio serves as an alternative, having outperformed the S&P 500 and achieved returns exceeding 91% since its inception. View the earnings reaction history of all stocks. Here are some insights on one-day (1D) post-earnings returns: Further data for the observed 5-Day (5D) and 21-Day (21D) returns following earnings is presented along with the statistics in the table below. Correlation Among 1D, 5D, and 21D Historical Returns A somewhat less risky strategy (though ineffective if the correlation is low) is to comprehend the correlation between short-term and medium-term returns following earnings, identify a pair that shows the highest correlation, and execute the suitable trade. For instance, if 1D and 5D display the strongest correlation, a trader might position themselves 'long' for the next 5 days if the 1D post-earnings return is positive. Below is some correlation data based on a 5-year and a 3-year (more recent) history. Note that the correlation 1D_5D indicates the relationship between 1D post-earnings returns and the subsequent 5D returns. Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), yielding robust returns for investors.
Yahoo
01-08-2025
- Business
- Yahoo
Eaton (ETN) Dips More Than Broader Market: What You Should Know
In the latest close session, Eaton (ETN) was down 1.46% at $384.40. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.74%, and the technology-dominated Nasdaq saw a decrease of 0.03%. The stock of power management company has risen by 8.91% in the past month, leading the Industrial Products sector's gain of 5.14% and the S&P 500's gain of 2.68%. The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company is slated to reveal its earnings on August 5, 2025. In that report, analysts expect Eaton to post earnings of $2.92 per share. This would mark year-over-year growth of 6.96%. At the same time, our most recent consensus estimate is projecting a revenue of $6.93 billion, reflecting a 9.09% rise from the equivalent quarter last year. For the full year, the Zacks Consensus Estimates are projecting earnings of $12.02 per share and revenue of $27.37 billion, which would represent changes of +11.3% and +10.01%, respectively, from the prior year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Eaton presently features a Zacks Rank of #3 (Hold). From a valuation perspective, Eaton is currently exchanging hands at a Forward P/E ratio of 32.46. This indicates a premium in contrast to its industry's Forward P/E of 24.33. One should further note that ETN currently holds a PEG ratio of 2.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 2.01 as trading concluded yesterday. The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Eaton Earnings Preview: What to Expect
Valued at a market cap of $146.2 billion, Eaton Corporation plc (ETN) is a power management company based in Dublin, Ireland. It specializes in electrical, hydraulic, and mechanical power solutions, including circuit protection, power distribution, industrial controls, aerospace systems, vehicle powertrains, and EV charging, aiming to improve energy efficiency, safety, reliability, and sustainability. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Tuesday, Aug. 5. Ahead of this event, analysts expect this power management company to report a profit of $2.92 per share, up 7% from $2.73 per share in the year-ago quarter. The company has topped Wall Street's earnings estimates in each of the last four quarters. In Q1, ETN's EPS of $2.72 marginally outpaced the forecasted figure. More News from Barchart Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2025, analysts expect Eaton to report a profit of $12.01 per share, up 11.2% from $10.80 per share in fiscal 2024. Furthermore, its EPS is expected to grow 13.4% year-over-year to $13.62 in fiscal 2026. ETN has outpaced the S&P 500 Index's ($SPX) 14.5% uptick over the past 52 weeks, with its shares up 19.8% over the same time frame. However, it has lagged behind the Industrial Select Sector SPDR Fund's (XLI) 20.7% return over the same period. On May 2, ETN's shares plunged marginally after its Q1 earnings release despite delivering better-than-expected Q1 results. Its revenue improved 7.3% year-over-year to $6.4 billion, exceeding consensus estimates by 1.8%. Moreover, its segment margins reached a record Q1 high of 23.9%, up 80 basis points year-over-year, contributing to a 13.3% rise in its adjusted EPS to $2.72. The bottom-line figure also topped Wall Street estimates by a slight margin. Looking ahead to fiscal 2025, ETN projects organic growth of 7.5% to 9.5%, and anticipates adjusted EPS in the range of $11.80 to $12.20. Wall Street analysts are moderately optimistic about ETN's stock, with an overall "Moderate Buy" rating. Among 22 analysts covering the stock, 14 recommend "Strong Buy," two indicate "Moderate Buy,' and six suggest "Hold.' The mean price target for ETN is $375.50, indicating a marginal potential upside from the current levels. On the date of publication, Neharika Jain 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. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
