Eaton Corporation ETN is expected to beat earnings estimates when it reports third-quarter 2018 financial results on Oct 30, before the opening bell. The power management company delivered a positive earnings surprise of 5.30% in the last reported quarter. What Our Quantitative Model Predicts
Our proven model shows that Eaton is likely to beat estimates in the upcoming quarterly results. A stock needs to have both a positive Earnings ESP
(which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. The company has the right mix of both. You can see the complete list of today's Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote
Earnings ESP : Earnings ESP of the company is pegged at +0.08%.
Zacks Rank : Currently, Eaton carries a Zacks Rank #2. The combination of the company's favorable Zacks Rank and a positive ESP makes us reasonably confident of a positive earnings surprise.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
Eaton expects third-quarter earnings in the range of $1.35-$1.45 per share and organic revenues to expand 7%. The company continues to lower its outstanding shares via share repurchase, which is going to have a positive impact on earnings.
The company is restructuring its business in order to strengthen existing operations. Ongoing improvement in end-market conditions is going to have a positive impact on its earnings.
The Zacks Consensus Estimate for third-quarter total revenues of $5,489 million reflects 5.3% year-over-year growth. The Electric Products segment is a major contributor to Eaton's total revenues. The Zacks Consensus Estimate of $1,882 million for this segment's revenues projects a 1.3% year-over-year increase.
Other Stocks With Favorable Combination
Eaton is not the only company looking up this earnings season. Investors can also consider other companies from the same industry , which also have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Regal Beloit Corporation RBC has an Earnings ESP of +1.18% and a Zacks Rank #3. It is expected to report third-quarter 2018 earnings on Nov 5.
Emerson Electric Co. EMR has an Earnings ESP of +1.73% and holds a Zacks Rank #3. It is slated to report fourth-quarter fiscal 2018 earnings on Nov 6.
Rexnord Corporation. RXN has an Earnings ESP of +2.02% and a Zacks Rank #3. It is anticipated to report second-quarter fiscal 2019 earnings on Oct 30.
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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 Emerson Electric Co. (EMR): Free Stock Analysis Report Rexnord Corporation (RXN): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research