Eaton (ETN) Tops Q4 Earnings Estimates, Issues 2018 Guidance
Zacks Investment Research | Feb 01, 2018 04:22AM ET
Eaton Corporation’s (NYSE:ETN) earnings per share of $1.29 in fourth-quarter 2017 topped the Zacks Consensus Estimate of $1.25 by 3.2%. Reported earnings were at the high end of management’s guidance range of $1.19-$1.29. Also, earnings were 15% higher than the year-ago figure.
Adjusted earnings in the quarter, including the new one-time gain of 14 cents from the new U.S. tax law, were $1.43 per share.
Revenues
In the quarter, Eaton’s total revenues came in at $5,213 million, surpassing the Zacks Consensus Estimate of $5,090 million by 2.4%. The figure was 7.1% higher than the year-ago quarter.
The year-over-year sales increase includes 5% growth in organic sales and 2% rise in positive currency translations, which was better than the expected growth of 3-4% from organic sales and 1.5% from positive currency translations.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Our View
Eaton’s earnings and total revenues were better than expectations thanks to the strong performance of every segment. Better-than-expected organic sales and positive currency translation also boosted the performance of the company.
We believe the improvement in end-market conditions is boosting the order book of the company. The free cash flow generation capability is also helping Eaton to move ahead with its share repurchase program.
The company will also gain from its restructuring activities, which is expected to bring about a net gain of $55 million in 2017.
Upcoming Releases
ABB Ltd (NYSE:ABB) is scheduled to report its fourth -quarter 2017 earnings on Feb 8, 2018. The Zacks Consensus Estimate for the quarter is pegged at 25 cents
SPX FLOW Inc. (NYSE:FLOW) is slated to report fourth-quarter 2017 earnings on Feb 6. The Zacks Consensus Estimate is pegged at 50 cents.
CUI Global Inc. (NASDAQ:CUI) is slated to report fourth-quarter 2017 earnings on Mar 13. The Zacks Consensus Estimate is pegged at a loss of 6 cents.
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