Eaton Corporation plc
) is scheduled to release its first quarter 2014 financial
results before the market bell on Apr 29, 2014. The company
posted a positive earnings surprise of 1.89% in the preceding
quarter. Eaton Corp. currently has a Zacks Rank #3 (Hold). Let's
see how things are shaping up prior to this announcement.
ADV ENERGY INDS (AEIS): Free Stock Analysis
SMITH (AO) CORP (AOS): Free Stock Analysis
ACTUANT CORP (ATU): Free Stock Analysis
EATON CORP PLC (ETN): Free Stock Analysis
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Factors to Consider this Quarter
Although Eaton posted healthy earnings growth in the fourth
quarter, the company might face certain challenges in the first
quarter of 2014. The Electrical Service and Systems segment
registered weak data center bookings in 2013. Besides, the
continued soft market conditions in Asia could affect the
The company's (light-emitting diode) LED electrical products
received a lukewarm response in Europe, Middle East and Africa.
In Asia-Pacific too LED product sales declined 5% in the fourth
quarter with demand yet to pick up.
However, given the rising demand in the commercial airline space,
the Aerospace segment will prove to be a major revenue driver. In
addition, positive economic fundamentals in the auto industry
will propel Eaton's heavy-duty vehicle sales.
Accordingly, our proven model does not conclusively show that
Eaton Corp. is likely to beat earnings this quarter. That is
because a stock needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for
this to happen. This is not the case here.
Negative Zacks ESP:
The Most Accurate estimate stands at 98 cents while the Zacks
Consensus Estimate is pegged higher at $1.00 per share, resulting
in a -2.00% ESP.
Zacks Rank #3 (Hold):
The combination of a Zacks Rank #3 and a negative ESP makes an
earnings surprise prediction difficult. Meanwhile, we caution
against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks)
going into the earnings announcement.
Other Stocks to Consider
Here are some companies in the diversified machinery industry
having the right combination of elements to post an earnings beat
Advanced Energy Industries Inc.
) has an earnings ESP of +10.00% and carries a Zacks Rank #1
AO Smith Corp.
) has an earnings ESP of +1.67% and carries a Zacks Rank #2
) has an earnings ESP of +1.59% and carries a Zacks Rank #3