Eaton (ETN) to Release Q1 Earnings: What’s in the Offing?

Eaton Corporation ETN is scheduled to report first-quarter 2023 earnings on May 2, before the opening bell. The power management company delivered an earnings surprise of 0.98% in the trailing four quarters, on average.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note

Eaton’s widespread operation and strong performance of its organic assets are expected to have boosted earnings in the quarter. The ongoing improvement in end-market conditions and contribution from inorganic assets are expected to have a positive impact on earnings. Lower shares outstanding are also expected to have boosted earnings.

Eaton’s first-quarter earnings are expected to have been impacted by negative currency translation and an increase in corporate expenses is likely to have offset some positives in the quarter.

Expectations

Eaton expects first-quarter earnings in the range of $1.72-$1.82 per share. It anticipates organic revenue growth of 8-10%. The segmental operating margin is expected to be 19.5-19.9% for the quarter.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.78 per share, indicating an improvement of 9.88% from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you will see below.

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

Earnings ESP: Eaton has an Earnings ESP of +0.94%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Eaton carries a Zacks Rank #3.

Other Stocks to Consider

Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming release.

Flowserve Corporation FLS is likely to come up with an earnings beat when it reports first-quarter 2023 results on May 1. It has an Earnings ESP of +3.71% and currently sports a Zacks Rank #2.

Flowserve’s long-term (three- to five-year) earnings growth is projected at 21.52%. The Zacks Consensus Estimate for FLS’s 2023 earnings per share indicates year-over-year growth of 52.73%.

Terex Corporation TEX is likely to come up with an earnings beat when it reports first-quarter 2023 results on May 2. It has an Earnings ESP of +12.38% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Terex’s long-term earnings growth is projected at 18.82%. The Zacks Consensus Estimate for TEX’s 2023 earnings per share indicates year-over-year growth of 13.43%.

Zebra Technologies ZBRA is likely to come up with an earnings beat when it reports first-quarter 2023 on May 2. It has an Earnings ESP of +3.06% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Zebra Technologies’ 2023 earnings per share indicates year-over-year growth of 0.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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