What You Need to Know Ahead of Eaton's Earnings Release

Dublin, Ireland-based Eaton Corporation plc (ETN) is a power management company and a global technology leader in electrical components and systems. Valued at a market cap of $108.6 billion, the company serves a wide range of markets, including electrical, aerospace, vehicle, and eMobility sectors. It is scheduled to announce its fiscal Q1 earnings for 2025 on Tuesday, Apr. 29.

Ahead of this event, analysts expect this power management company to report a profit of $2.70 per share, up 12.5% from $2.40 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street's earnings estimates in each of the last four quarters. In Q4 2024, ETN’s EPS of $2.83 marginally outpaced the forecasted figure. 

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For fiscal 2025, analysts expect Eaton to report a profit of $12 per share, up 11.1% from $10.80 in fiscal 2024. Its EPS is expected to further grow 12.7% year over year to $13.52 in fiscal 2026. 

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Shares of ETN have declined 12.1% over the past 52 weeks, falling behind both the S&P 500 Index's ($SPX) 6.6% gain, and the Industrial Select Sector SPDR Fund’s (XLI) 3.6% rise over the same time frame.

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On Jan. 31, shares of ETN saw a slight dip following its mixed Q4 earnings release. On the upside, ETN’s adjusted EPS of $2.83 advanced 11% from the year-ago quarter and slightly surpassed Wall Street expectations. Moreover, its revenue improved 4.6% from the year-ago quarter, reaching $6.2 billion. However, on the downside, its top-line figure missed Wall Street’s estimates by 1.7%, primarily due to weaker sales in the eMobility and vehicle segments, which were impacted by softness in the light vehicle market. 

Wall Street analysts are moderately optimistic about ETN’s stock, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, 13 recommend "Strong Buy," two advise “Moderate Buy,” and six suggest “Hold.” The mean price target for ETN is $348.86, which indicates a 25.9% potential upside from the current levels.