Eaton Corp Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Eaton Corp (NYSE:ETN) will unveil its latest earnings on Monday, July 25, 2011. Eaton Corporation 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 net income of 95 cents per share, a rise of 39.7% 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 93 cents. For the year, analysts are projecting profit of $3.92 per share, a rise of 39.5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting net income of 84 cents per share against a mean estimate of profit of 80 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $4.01 billion in revenue this quarter, a rise of 18.6% from the year ago quarter. Analysts are forecasting total revenue of $16.06 billion for the year, a rise of 17.1% from last year’s revenue of $13.72 billion.

Analyst Ratings: Analysts are bullish on Eaton as nine analysts rate it as a buy, none rate it as a sell and nine rate it as a hold.

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 18.5%, with the biggest boost coming in the most recent quarter when revenue rose 22.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 85.2% while it rose 32.7% in the fourth quarter of the last fiscal year and 38.9% in the third quarter of the last fiscal year.

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 June 20, 2011 to July 19, 2011, the stock price had risen $4.04 (8.5%) from $47.41 to $51.45. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 1, 2011 when shares rose for six-straight days, rising 9.3% (+$4.46) 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% (-$3.59) over that span. Shares are up $1.34 (+2.7%) year to date.

(Source: Xignite Financials)

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