Eaton (NYSE:ETN) Issues 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 Performance

Shares of NYSE:ETN traded down $6.74 on Tuesday, hitting $319.77. The company’s stock had a trading volume of 3,437,977 shares, compared to its average volume of 1,987,696. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.02 and a current ratio of 1.51. The company has a market capitalization of $127.75 billion, a price-to-earnings ratio of 40.75, a price-to-earnings-growth ratio of 2.69 and a beta of 1.07. The stock’s 50-day moving average is $305.81 and its two-hundred day moving average is $259.67. Eaton has a 12 month low of $165.24 and a 12 month high of $333.06.

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

Eaton Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 24th. Stockholders of record on Monday, May 6th will be issued a $0.94 dividend. The ex-dividend date of this dividend is Friday, May 3rd. This represents a $3.76 annualized dividend and a dividend yield of 1.18%. Eaton’s dividend payout ratio (DPR) is 46.88%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on ETN shares. Bank of America upped their target price on Eaton from $320.00 to $330.00 and gave the company a buy rating in a report on Monday, March 18th. UBS Group upped their target price on Eaton from $255.00 to $305.00 and gave the company a buy rating in a report on Friday, February 2nd. Evercore ISI upped their target price on Eaton from $262.00 to $308.00 and gave the company an outperform rating in a report on Tuesday, February 20th. Mizuho upped their target price on Eaton from $300.00 to $340.00 and gave the company a buy rating in a report on Wednesday, March 20th. Finally, Citigroup upped their target price on Eaton from $270.00 to $310.00 and gave the company a buy rating in a report on Friday, February 2nd. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of Moderate Buy and a consensus target price of $295.60.

Insider Activity

In other Eaton news, insider Ernest W. Marshall, Jr. sold 19,750 shares of the business’s stock in a transaction that occurred 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 transaction, the insider now owns 29,712 shares of the company’s stock, valued at $8,116,427.04. The sale was disclosed in a document filed with the SEC, which is available through this link. In related news, insider Heath B. Monesmith sold 13,027 shares of the stock in a transaction on Monday, March 11th. The stock was sold at an average price of $291.40, for a total value of $3,796,067.80. Following the completion of the sale, the insider now directly owns 69,472 shares in the company, valued at $20,244,140.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 value 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 $8,116,427.04. The disclosure for this sale can be found here. Insiders have sold a total of 38,969 shares of company stock worth $10,904,774 over the last three months. Corporate insiders own 0.33% of the company’s stock.

Eaton Company Profile

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.