Zacks Research Weighs in on Eaton’s Q3 Earnings (NYSE:ETN)

Eaton Corporation, PLC (NYSE:ETN) – Analysts at Zacks Research raised their Q3 2026 earnings per share (EPS) estimates for shares of Eaton in a report released on Thursday, August 20th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $3.51 for the quarter, up from their previous forecast of $3.50. The consensus estimate for Eaton’s current full-year earnings is $13.55 per share. Zacks Research also issued estimates for Eaton’s Q1 2027 earnings at $3.45 EPS, Q2 2027 earnings at $3.74 EPS, Q3 2027 earnings at $4.15 EPS, Q4 2027 earnings at $4.14 EPS, FY2027 earnings at $15.48 EPS, Q1 2028 earnings at $3.88 EPS, Q2 2028 earnings at $4.53 EPS and FY2028 earnings at $17.41 EPS.

Eaton (NYSE:ETN) last posted its quarterly earnings data on Friday, July 31st. The industrial products company reported $3.15 earnings per share for the quarter, topping the consensus estimate of $3.08 by $0.07. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The company had revenue of $8.53 billion for the quarter, compared to analysts’ expectations of $8.16 billion. During the same period in the prior year, the business earned $2.95 earnings per share. Eaton’s revenue for the quarter was up 21.4% compared to the same quarter last year. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS.

A number of other equities research analysts also recently weighed in on the company. Barclays raised their price target on Eaton from $340.00 to $392.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Morgan Stanley reissued an “overweight” rating and set a $500.00 price objective on shares of Eaton in a report on Sunday, May 10th. Wells Fargo & Company boosted their target price on Eaton from $350.00 to $425.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Royal Bank Of Canada increased their price target on shares of Eaton from $484.00 to $512.00 and gave the company an “outperform” rating in a research report on Monday, August 3rd. Finally, Robert W. Baird set a $500.00 price target on shares of Eaton and gave the stock an “outperform” rating in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, Eaton has a consensus rating of “Moderate Buy” and a consensus price target of $440.89.

Eaton Stock Performance

NYSE ETN opened at $408.59 on Monday. Eaton has a 52-week low of $311.92 and a 52-week high of $478.00. The company has a fifty day moving average of $417.30 and a 200-day moving average of $396.67. The company has a market capitalization of $158.70 billion, a P/E ratio of 41.57, a P/E/G ratio of 2.65 and a beta of 1.18. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.79 and a current ratio of 1.24.

Eaton Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 7th will be given a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a yield of 1.1%. The ex-dividend date is Friday, August 7th. Eaton’s dividend payout ratio (DPR) is presently 44.76%.

Insiders Place Their Bets

In other news, Director Gerald Johnson bought 130 shares of the business’s stock in a transaction dated Thursday, August 13th. The shares were purchased at an average price of $455.90 per share, for a total transaction of $59,267.00. Following the completion of the acquisition, the director owned 1,829 shares of the company’s stock, valued at approximately $833,841.10. This trade represents a 7.65% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Adam A. Wadecki sold 525 shares of Eaton stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $440.54, for a total transaction of $231,283.50. Following the completion of the transaction, the insider directly owned 1,054 shares in the company, valued at approximately $464,329.16. The trade was a 33.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Eaton

A number of hedge funds have recently modified their holdings of the company. Manning & Napier Advisors LLC bought a new stake in shares of Eaton in the second quarter worth about $27,000. Hilton Head Capital Partners LLC bought a new position in Eaton during the 4th quarter valued at approximately $26,000. Archer Investment Corp purchased a new stake in Eaton in the 2nd quarter worth approximately $35,000. Sfam LLC purchased a new stake in Eaton in the 4th quarter worth approximately $27,000. Finally, Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Eaton in the 4th quarter worth approximately $28,000. Hedge funds and other institutional investors own 82.97% of the company’s stock.

About Eaton

Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.

Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.