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Eaton lowers 2025 profit forecast, shares fall
Eaton lowers 2025 profit forecast, shares fall

Reuters

time05-08-2025

  • 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.

Will Q2 Results Move Eaton's Stock Up?
Will Q2 Results Move Eaton's Stock Up?

Forbes

time04-08-2025

  • 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.

Eaton (ETN) Dips More Than Broader Market: What You Should Know
Eaton (ETN) Dips More Than Broader Market: What You Should Know

Yahoo

time01-08-2025

  • 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

Eaton Earnings Preview: What to Expect
Eaton Earnings Preview: What to Expect

Yahoo

time22-07-2025

  • 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

Eaton (ETN) Stock Slides as Market Rises: Facts to Know Before You Trade
Eaton (ETN) Stock Slides as Market Rises: Facts to Know Before You Trade

Yahoo

time22-07-2025

  • Business
  • Yahoo

Eaton (ETN) Stock Slides as Market Rises: Facts to Know Before You Trade

Eaton (ETN) ended the recent trading session at $373.66, demonstrating a -1.31% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%. The power management company's stock has climbed by 14.31% in the past month, exceeding the Industrial Products sector's gain of 7.52% and the S&P 500's gain of 5.35%. The upcoming earnings release of Eaton will be of great interest to investors. The company's earnings report is expected 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%. Simultaneously, our latest consensus estimate expects the revenue to be $6.93 billion, showing a 9.09% escalation compared to the year-ago quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.01 per share and a revenue of $27.36 billion, indicating changes of +11.2% and +9.98%, respectively, from the former year. It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. Eaton currently has a Zacks Rank of #3 (Hold). In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 31.52. Its industry sports an average Forward P/E of 24.02, so one might conclude that Eaton is trading at a premium comparatively. Also, we should mention that ETN has a PEG ratio of 2.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ETN's industry had an average PEG ratio of 1.98 as of yesterday's close. The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in 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

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