Wall Street analysts expect Eaton (ETN) to post quarterly earnings of $3.33 per share in its upcoming report, which indicates a year-over-year increase of 17.7%. Revenues are expected to be $7.11 billion, up 13.9% from the year-ago quarter.
The current level reflects a downward revision of 0.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company’s earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts’ forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let’s delve into the average projections of some Eaton metrics that are commonly tracked and projected by analysts on Wall Street.
The consensus among analysts is that ‘Net Sales- eMobility’ will reach $150.51 million. The estimate suggests a change of +2.4% year over year.
It is projected by analysts that the ‘Net Sales- Aerospace’ will reach $1.10 billion. The estimate indicates a change of +13.1% from the prior-year quarter.
Analysts expect ‘Net Sales- Vehicle’ to come in at $588.71 million. The estimate indicates a change of -9% from the prior-year quarter.
The combined assessment of analysts suggests that ‘Net Sales- Electrical Global’ will likely reach $1.71 billion. The estimate indicates a year-over-year change of +8.8%.
The consensus estimate for ‘Net Sales- Electrical Americas’ stands at $3.55 billion. The estimate suggests a change of +22.2% year over year.
The average prediction of analysts places ‘Segment operating profit (loss)- Aerospace’ at $261.86 million. The estimate is in contrast to the year-ago figure of $222.00 million.
Analysts’ assessment points toward ‘Segment operating profit (loss)- Vehicle’ reaching $87.35 million. Compared to the present estimate, the company reported $122.00 million in the same quarter last year.
Analysts predict that the ‘Segment operating profit (loss)- Electrical Global’ will reach $332.24 million. The estimate is in contrast to the year-ago figure of $277.00 million.
According to the collective judgment of analysts, ‘Segment operating profit (loss)- Electrical Americas’ should come in at $1.04 billion. The estimate compares to the year-ago value of $918.00 million.
Analysts forecast ‘Segment operating profit (loss)- eMobility’ to reach $3.24 million. Compared to the current estimate, the company reported $3.00 million in the same quarter of the previous year.
View all Key Company Metrics for Eaton here>>>
Over the past month, Eaton shares have recorded returns of +9.1% versus the Zacks S&P 500 composite’s +0.8% change. Based on its Zacks Rank #3 (Hold), ETN will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>> .
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This article originally published on Zacks Investment Research (zacks.com).