Earnings Report: Here’s what to expect from Eaton (NYSE:ETN)

Earnings results for Eaton (NYSE:ETN)

Eaton Corporation, PLC is expected* to report earnings on 05/04/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 9 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.25. The reported EPS for the same quarter last year was $1.09.

Eaton last announced its quarterly earnings data on February 1st, 2021. The industrial products company reported $1.28 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.08. The firm earned $4.69 billion during the quarter, compared to the consensus estimate of $4.62 billion. Its revenue was down 10.5% on a year-over-year basis. Eaton has generated $5.67 earnings per share over the last year and currently has a price-to-earnings ratio of 42.0. Eaton has confirmed that its next quarterly earnings report will be published on Tuesday, May 4th, 2021. Eaton will be holding an earnings conference call on Tuesday, May 4th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Eaton (NYSE:ETN)

16 Wall Street analysts have issued ratings and price targets for Eaton in the last 12 months. Their average twelve-month price target is $136.18, predicting that the stock has a possible downside of 4.73%. The high price target for ETN is $160.00 and the low price target for ETN is $81.00. There are currently 1 sell rating, 3 hold ratings and 12 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Eaton has received a consensus rating of Buy. The company’s average rating score is 2.69, and is based on 12 buy ratings, 3 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $136.18, Eaton has a forecasted downside of 4.7% from its current price of $142.93. Eaton has been the subject of 11 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Eaton (NYSE:ETN)

Eaton pays a meaningful dividend of 2.13%, higher than the bottom 25% of all stocks that pay dividends. Eaton has only been increasing its dividend for 1 years. The dividend payout ratio of Eaton is 53.62%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Eaton will have a dividend payout ratio of 62.42% next year. This indicates that Eaton will be able to sustain or increase its dividend.

Insiders buying/selling: Eaton (NYSE:ETN)

In the past three months, Eaton insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $4,945,066.00 in company stock. Only 0.54% of the stock of Eaton is held by insiders. 77.88% of the stock of Eaton is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Eaton (NYSE:ETN

Earnings for Eaton are expected to grow by 16.79% in the coming year, from $4.17 to $4.87 per share. The P/E ratio of Eaton is 42.04, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 24.00. The P/E ratio of Eaton is 42.04, which means that it is trading at a less expensive P/E ratio than the Industrial Products sector average P/E ratio of about 49.79. Eaton has a PEG Ratio of 2.34. PEG Ratios above 1 indicate that a company could be overvalued. Eaton has a P/B Ratio of 3.66. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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