Eaton (NYSE:ETN) Issues Q2 Earnings Guidance

Eaton (NYSE:ETN) updated its second quarter earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of $2.52-2.62 for the period, compared to the consensus estimate of $2.52. Eaton also updated its FY 2024 guidance to 10.200-10.600 EPS.

Eaton Stock Performance

ETN opened at $331.07 on Tuesday. The company has a market cap of $132.26 billion, a P/E ratio of 40.75, a price-to-earnings-growth ratio of 2.69 and a beta of 1.07. The company has a quick ratio of 1.02, a current ratio of 1.51 and a debt-to-equity ratio of 0.43. The firm’s 50-day moving average price is $305.81 and its 200-day moving average price is $259.67. Eaton has a 52-week low of $165.24 and a 52-week high of $331.97.

Eaton (NYSE:ETN) last issued its quarterly earnings results on Thursday, February 1st. The industrial products company reported $2.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.47 by $0.08. The business had revenue of $5.97 billion for the quarter, compared to analyst estimates of $5.91 billion. Eaton had a net margin of 13.88% and a return on equity of 20.05%. Eaton’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.06 EPS. As a group, equities analysts anticipate that Eaton will post 10.28 EPS for the current fiscal year.

Eaton Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 24th. Shareholders of record on Monday, May 6th will be paid a dividend of $0.94 per share. The ex-dividend date is Friday, May 3rd. This represents a $3.76 annualized dividend and a yield of 1.14%. Eaton’s payout ratio is presently 46.88%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on ETN. Royal Bank of Canada upgraded Eaton from a sector perform rating to an outperform rating and raised their price objective for the stock from $286.00 to $371.00 in a research note on Friday, April 5th. Barclays raised shares of Eaton from an underweight rating to an equal weight rating and upped their price objective for the company from $250.00 to $300.00 in a report on Tuesday, April 2nd. Berenberg Bank raised their target price on shares of Eaton from $200.00 to $345.00 and gave the stock a buy rating in a report on Wednesday, March 6th. UBS Group upped their price target on shares of Eaton from $255.00 to $305.00 and gave the company a buy rating in a report on Friday, February 2nd. Finally, Evercore ISI raised their price target on Eaton from $262.00 to $308.00 and gave the company an outperform rating in a research note on Tuesday, February 20th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of Moderate Buy and a consensus target price of $295.60.

Insider Transactions at Eaton

In related news, insider Olivier Leonetti sold 4,461 shares of the company’s stock in a transaction on Tuesday, February 13th. The shares were sold at an average price of $272.00, for a total value of $1,213,392.00. Following the completion of the sale, the insider now owns 630 shares in the company, valued at approximately $171,360. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other news, insider Peter Denk sold 1,731 shares of the business’s stock in a transaction that occurred on Thursday, February 29th. The stock was sold at an average price of $288.97, for a total value of $500,207.07. Following the transaction, the insider now owns 5,514 shares of the company’s stock, valued at $1,593,380.58. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Olivier Leonetti sold 4,461 shares of the stock in a transaction on Tuesday, February 13th. The stock was sold at an average price of $272.00, for a total value of $1,213,392.00. Following the sale, the insider now directly owns 630 shares of the company’s stock, valued at $171,360. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 38,969 shares of company stock worth $10,904,774. Insiders own 0.33% of the company’s stock.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.