Eaton Corp. plcNYSE
Realistic Expectations And Improving Performance At Eaton
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Nov. 1, 8:02 AM
- Operating earnings of $524M, or $1.15 per share, vs. $453M, or $0.97 per share, a year earlier.
- Revenue by segment: Electrical Products flat; Electrical Systems and Services -3%; Hydraulics -6%; Aerospace -3%; Vehicle -12%.
- Repurchased $243M of shares during the quarter.
- "The decline in orders... suggests to us that sales in the fourth quarter of 2016 and in 2017 are likely to be soft," said CEO Craig Arnold. "As a result, we anticipate expanding our 2017 restructuring program to a cost of $180M, compared to our prior guidance of $130M."
- The company expects operating EPS for Q4 to be between $1.05-$1.15 and narrowed its full year operating EPS range to $4.15-$4.25 (from $4.20-$4.40).
- Q3 results
Tue, Nov. 1, 6:31 AM
Mon, Oct. 31, 5:30 PM
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Tue, Oct. 25, 10:55 AM
Tue, Aug. 16, 3:52 AM
- The Obama administration is expected to issue final rules today reducing greenhouse gas emissions from trucks over the next decade, likely one of the last major climate-related rules President Obama will issue before he leaves office.
- The final regulations, which aim to cut 1B metric tons of emissions, will be a game-changer for tractor-trailers, buses and other large vehicles with model years 2021 through 2027.
- Related tickers: CMI, ETN, NAV, PCAR, OTCPK:DDAIF, OTCPK:VOLVY
Tue, Aug. 2, 8:20 AM
- Net income of $491M, or $1.07 per share, vs. $535M, or $1.14 per share, a year earlier.
- Revenue by segment: Electrical Products flat; Electrical Systems and Services -5%; Hydraulics -8%; Aerospace -2%; Vehicle -16%.
- Spent $35M on the company's restructuring program in Q2, in line with previous guidance.
- "We continue to expect a decline in organic revenue in 2016 of between 2-4%," said CEO Craig Arnold. "We now estimate the impact of negative currency translation to be $225M, $25M higher than our previous estimate."
- The company expects operating EPS for Q3 of 2016 to be between $1.10-$1.20 and narrowed its full year operating EPS range to $4.20-$4.40.
- ETN +1.7% premarket
- Q2 results
Tue, Aug. 2, 6:30 AM
Mon, Aug. 1, 5:30 PM
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Tue, Jul. 26, 5:49 PM
Thu, Jun. 16, 9:08 AM
Fri, Apr. 29, 6:31 AM
- Eaton (NYSE:ETN): Q1 EPS of $0.88 beats by $0.03.
- Revenue of $4.8B (-8.0% Y/Y) beats by $30M.
Thu, Apr. 28, 5:30 PM| Thu, Apr. 28, 5:30 PM | 3 Comments
Tue, Apr. 26, 10:59 AM
- Eaton (NYSE:ETN) declares $0.57/share quarterly dividend, in line with previous.
- Forward yield 3.62%
- Payable May 20; for shareholders of record May 6; ex-div May 4.
Wed, Apr. 13, 2:24 PM
- Investors should take profits on machinery stocks ahead of earnings, J.P. Morgan analysts say, as valuations are stretched after the sector outperformed the S&P in Q1 +17% vs. +1.3%, and investors likely will have little tolerance for weaker than expected performance.
- The firm suggests avoiding Deere (DE +1.9%), Agco (AGCO +3.5%) and CNH Industrial (CNHI +3%) on weaker fundamentals with downside risk to the market outlooks for each region, and Paccar (PCAR +2.9%) on weaker NAFTA HD truck demand vs. its guide for a 12% decline in U.S. and Canada retail sales.
- However, JPM likes Allison Transmission (ALSN +2.4%) heading into Q1 as it has underperformed peers while its exposure to HD Class 8 long haul is limited and MD orders are up 5% YTD.
- Rated Neutral CAT, MTW, JOY, NAV, TEX, MCRN, PH, KMT, ETN, ITW.
Wed, Feb. 24, 8:36 AM
- Eaton (NYSE:ETN) declares $0.57/share quarterly dividend, 3.6% increase from prior dividend of $0.55.
- Forward yield 4.03%
- Payable March 18; for shareholders of record March 7; ex-div March 3.
Wed, Feb. 3, 3:59 PM
- Eaton (ETN +6.9%) moves to its highs of the day after saying it will extend its business cost-cutting program through 2017, as it anticipates continued sluggish demand for its electrical equipment, truck transmissions and hydraulic components.
- ETN's Q4 earnings beat estimates despite a 9% drop in sales, as is responding to lower sales volumes by shoring up its business units’ profit margins and doubling down on its stock buybacks after spending $682M on its stock in 2015.
- After spending $129M on cost-cutting moves during 2015 that included closing eight plants, ETN plans to spend an additional $140M on restructuring in 2016 and $130M in 2017, which the company expects to yield $290M in estimated annual cost reduction benefits.
- Eaton predicts that organic revenue, which excludes forex rates and revenue from acquisitions, will decline by 2%-4% in 2016 after falling 2% in 2015, but it expects to nudge up its operating margin this year from 15.2% in 2015, helping hold this year’s earnings about flat with 2015.