Eaton Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Eaton Corp (NYSE:ETN) will unveil its latest earnings on Thursday, January 26, 2012. Eaton is a power management company offering services in the sectors of electricity, hydraulics, aerospace, truck, and automotive.

Eaton Corp Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.11 per share, a rise of 30.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.10. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.11 during the last month. For the year, analysts are projecting net income of $4 per share, a rise of 42.3% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported profit of $1.07 per share versus a mean estimate of net income of $1.09 per share. In the second quarter, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 13.7% in revenue from the year-earlier quarter to $4.16 billion.

Analyst Ratings: Analysts are bullish on this stock with 10 analysts rating it as a buy, one rating it as a sell and three rating it as a hold.

A Look Back: In the third quarter, profit rose 36.2% to $365 million ($1.07 a share) from $268 million (79 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 15.5% to $4.12 billion from $3.57 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 19%, with the biggest boost coming in the first quarter when revenue rose 22.6% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 48.7% in the second quarter and 85.2% in the first quarter.

Competitors to Watch: Parker-Hannifin Corp. (NYSE:PH), Magnetek, Inc. (NYSE:MAG), Tech/Ops Sevcon, Inc. (NASDAQ:TO), United Technologies Corp. (NYSE:UTX), General Electric Company (NYSE:GE), Sauer-Danfoss Inc. (NYSE:SHS), Dover Corporation (NYSE:DOV), Thomas & Betts Corporation (NYSE:TNB), Roper Industries, Inc. (NYSE:ROP), and Crane Co. (NYSE:CR).

Stock Price Performance: During November 21, 2011 to January 20, 2012, the stock price had risen $5.28 (12.3%) from $43.10 to $48.38. The stock price saw one of its best stretches over the last year between October 7, 2011 and October 14, 2011 when shares rose for six-straight days, rising 9.2% (+$3.51) over that span. It saw one of its worst periods between April 1, 2011 and April 13, 2011 when shares fell for nine-straight days, falling 6.5% (-$3.54) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com