Eaton Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Eaton Corp (NYSE:ETN) will unveil its latest earnings on Monday, October 24, 2011. 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 net income of $1.09 per share, a rise of 36.3% 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 $1.06. Between one and three months ago, the average estimate moved up. It has dropped from $1.10 during the last month. For the year, analysts are projecting profit of $3.99 per share, a rise of 42% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 97 cents a share versus the estimate of profit of 95 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 17.6% in revenue from the year-earlier quarter to $4.2 billion.

Analyst Ratings: 10 out of 16 analysts surveyed (62.5%) have a buy rating on Eaton.. This is below the mean analyst rating of 10 competitors, which average 68.4% buy ratings.

A Look Back: In the second quarter, profit rose 48.7% to $336 million (97 cents a share) from $226 million (67 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 21.1% to $4.09 billion from $3.38 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 19.6%, 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 85.2% in the first quarter and 32.7% in the fourth 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 July 25, 2011 to October 18, 2011, the stock price had fallen $9.88 (-18.9%) from $52.20 to $42.32. 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% (+$3.54) 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% (-$3.56) over that span. Shares are down $7.42 (-14.9%) year to date.

(Source: Xignite Financials)

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