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Eaton (ETN) to Release Q4 Earnings: What's in the Offing?

Eaton Corporation ETN is scheduled to report fourth-quarter 2022 earnings on Feb 8, before the opening bell. The power management company delivered an earnings surprise of 1.27% in the trailing four quarters, on average.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Note

Eaton’s fourth-quarter earnings are likely to have benefited from lower shares outstanding than the year-ago reported level. The ongoing improvement in end-market conditions and organic sales growth are expected to have boosted earnings in the quarter. The fourth quarter is expected to have benefited from its acquisition and divestiture activities.

Negative currency translation is likely to have weighed on Eaton’s fourth-quarter earnings. An increase in corporate expenses is likely to have offset some positives in the quarter.

Expectations

Eaton expects fourth-quarter earnings of $2-$2.1 per share. It anticipates organic revenue growth of 13-15%. The segmental operating margin is expected to be 20.5-20.9% for the quarter.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.04 per share, indicating an improvement of 18.6% from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you will see below.

Eaton Corporation, PLC Price and EPS Surprise

 

Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

Earnings ESP: Eaton has an Earnings ESP of +0.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Eaton carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can also consider the following players from the same sector that also have the right combination of elements to beat on earnings in their upcoming releases.

Allegion Plc. ALLE is likely to come up with an earnings beat when it reports fourth-quarter 2022 results on Feb 22. It has an Earnings ESP of +4.19% and currently sports a Zacks Rank #1.

Allegion’s long-term (three- to five-year) earnings growth is projected at 6.95%. The Zacks Consensus Estimate for ALLE’s 2023 earnings per share indicates year-over-year growth of 12.13%.

The Middleby MIDD is likely to come up with an earnings beat when it reports fourth-quarter 2022 results on Feb 28. It has an Earnings ESP of +2.2% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for MIDD’s 2023 earnings per share indicates year-over-year growth of 5.12%.

TPI Composites, Inc. TPIC is likely to come up with an earnings beat when it reports fourth-quarter 2022 on Feb 23. It has an Earnings ESP of +51.45% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for TPI Composites’ 2023 earnings per share indicates year-over-year growth of 54.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

The Middleby Corporation (MIDD) : Free Stock Analysis Report

Allegion PLC (ALLE) : Free Stock Analysis Report

TPI Composites, Inc. (TPIC) : Free Stock Analysis Report

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Zacks Investment Research