Eaton Jumps On Strong Beat and Raise

Eaton Corp. reported flat earnings before the open Monday, topping estimates by $0.17. Shares were propelled higher in pre-market action on the beat, as well as by Eaton's decision to raise its full year guidance to well above analyst expectations, jumping 6% to an all-time high of $103.97. 2Q net income slipped 2.8% y/y to $246 million, leaving EPS at a flat $1.64 as the company reduced its total shares outstanding. Sales climbed 3.9% to $3.25 billion; consensus estimates called for EPS of $1.47 on revenue of $3.20 billion. The diversified industrial manufacturer raised its full year adjusted EPS outlook by $0.30, to between $6.75 to $6.95 a share; consensus estimates had previously called for EPS of $6.44. Eaton's recently ended quarter saw earnings benefit by $0.17 a share due to a lower tax rate; organic growth was down 1%. Eaton CEO and Chairman, Alexander M. Cutler, was "very pleased with our second quarter results, which substantially exceeded our guidance."

Sources: Press Release, MarketWatch, AP I, II, Reuters
Commentary: Midcap and Smallcap Beneficiaries From Boeing's New 787 Dreamliner • Eaton Corp Flies On Increased Aerospace Activity
Stocks/ETFs to watch: Eaton Corporation (ETN)

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