Eaton (NYSE:ETN) Releases Q2 Earnings Guidance

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

Eaton Stock Down 2.1 %

ETN stock traded down $6.74 during trading on Tuesday, hitting $319.77. 3,437,977 shares of the company’s stock traded hands, compared to its average volume of 1,987,696. The firm has a market capitalization of $127.75 billion, a P/E ratio of 40.75, a PEG ratio of 2.69 and a beta of 1.07. The business has a fifty day simple moving average of $305.81 and a two-hundred day simple moving average of $259.67. The company has a quick ratio of 1.02, a current ratio of 1.51 and a debt-to-equity ratio of 0.43. Eaton has a 1 year low of $165.24 and a 1 year high of $333.06.

Eaton (NYSE:ETN) last posted its quarterly earnings data on Thursday, February 1st. The industrial products company reported $2.55 EPS for the quarter, topping the consensus estimate of $2.47 by $0.08. The business had revenue of $5.97 billion during the quarter, compared to the consensus estimate of $5.91 billion. Eaton had a net margin of 13.88% and a return on equity of 20.05%. The business’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.06 earnings per share. Sell-side analysts anticipate that Eaton will post 10.28 EPS for the current year.

Eaton Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 24th. Stockholders 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 dividend on an annualized basis and a dividend yield of 1.18%. Eaton’s dividend payout ratio is currently 46.88%.

Analyst Upgrades and Downgrades

ETN has been the subject of several research reports. 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 research note on Tuesday, April 2nd. Berenberg Bank boosted their target price on shares of Eaton from $200.00 to $345.00 and gave the company a buy rating in a report on Wednesday, March 6th. Evercore ISI boosted their target price on shares of Eaton from $262.00 to $308.00 and gave the company an outperform rating in a report on Tuesday, February 20th. Citigroup boosted their target price on shares of Eaton from $270.00 to $310.00 and gave the company a buy rating in a report on Friday, February 2nd. Finally, Wolfe Research reiterated an underperform rating and issued a $312.00 target price on shares of Eaton in a report on Monday, April 8th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of Moderate Buy and a consensus target price of $295.60.

Insider Buying and Selling

In related news, insider Ernest W. Marshall, Jr. sold 19,750 shares of the stock in a transaction on Wednesday, February 7th. The shares were sold at an average price of $273.17, for a total transaction of $5,395,107.50. Following the completion of the sale, the insider now owns 29,712 shares in the company, valued at approximately $8,116,427.04. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In other news, insider Peter Denk sold 1,731 shares of the firm’s stock in a transaction on Thursday, February 29th. The shares were sold at an average price of $288.97, for a total value of $500,207.07. Following the completion of the sale, the insider now owns 5,514 shares in the company, valued at approximately $1,593,380.58. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ernest W. Marshall, Jr. sold 19,750 shares of the firm’s stock in a transaction on Wednesday, February 7th. The stock was sold at an average price of $273.17, for a total transaction of $5,395,107.50. Following the completion of the sale, the insider now owns 29,712 shares of the company’s stock, valued at approximately $8,116,427.04. The disclosure for this sale can be found here. Insiders sold a total of 38,969 shares of company stock worth $10,904,774 in the last 90 days. Company 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.