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Valued at a market cap of $146.2 billion, Eaton Corporation plc (ETN) is a power management company based in Dublin, Ireland. It specializes in electrical, hydraulic, and mechanical power solutions, including circuit protection, power distribution, industrial controls, aerospace systems, vehicle powertrains, and EV charging, aiming to improve energy efficiency, safety, reliability, and sustainability. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Tuesday, Aug. 5.
Ahead of this event, analysts expect this power management company to report a profit of $2.92 per share, up 7% from $2.73 per share in the year-ago quarter. The company has topped Wall Street’s earnings estimates in each of the last four quarters. In Q1, ETN’s EPS of $2.72 marginally outpaced the forecasted figure.
For fiscal 2025, analysts expect Eaton to report a profit of $12.01 per share, up 11.2% from $10.80 per share in fiscal 2024. Furthermore, its EPS is expected to grow 13.4% year-over-year to $13.62 in fiscal 2026.
ETN has outpaced the S&P 500 Index's ($SPX) 14.5% uptick over the past 52 weeks, with its shares up 19.8% over the same time frame. However, it has lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 20.7% return over the same period.
On May 2, ETN’s shares plunged marginally after its Q1 earnings release despite delivering better-than-expected Q1 results. Its revenue improved 7.3% year-over-year to $6.4 billion, exceeding consensus estimates by 1.8%. Moreover, its segment margins reached a record Q1 high of 23.9%, up 80 basis points year-over-year, contributing to a 13.3% rise in its adjusted EPS to $2.72. The bottom-line figure also topped Wall Street estimates by a slight margin. Looking ahead to fiscal 2025, ETN projects organic growth of 7.5% to 9.5%, and anticipates adjusted EPS in the range of $11.80 to $12.20.
Wall Street analysts are moderately optimistic about ETN’s stock, with an overall "Moderate Buy" rating. Among 22 analysts covering the stock, 14 recommend "Strong Buy," two indicate "Moderate Buy,” and six suggest "Hold.” The mean price target for ETN is $375.50, indicating a marginal potential upside from the current levels.
