Eaton (NYSE:ETN) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Eaton reported quarterly earnings of $2.95 EPS, exceeding estimates of $2.92 EPS, with a revenue of $7.03 billion—up 10.7% year-over-year.
• Following the earnings announcement, Eaton's stock fell by 6.4%, trading at $360.32.
• The company declared a quarterly dividend of $1.04, equating to an annualized amount of $4.16 and a yield of 1.2%.

Eaton (NYSE:ETN - Get Free Report) announced its quarterly earnings results on Tuesday. The industrial products company reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.92 by $0.03, Zacks reports. Eaton had a return on equity of 23.91% and a net margin of 15.11%. The company had revenue of $7.03 billion for the quarter, compared to the consensus estimate of $6.93 billion. During the same quarter in the previous year, the business earned $2.73 EPS. Eaton's revenue was up 10.7% compared to the same quarter last year. Eaton updated its Q3 2025 guidance to 3.010-3.070 EPS and its FY 2025 guidance to 11.970-12.170 EPS.

Eaton Trading Up 0.6%

NYSE ETN traded up $2.32 on Thursday, hitting $359.44. 1,673,368 shares of the stock were exchanged, compared to its average volume of 3,077,718. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.84 and a current ratio of 1.24. Eaton has a 52-week low of $231.85 and a 52-week high of $399.56. The firm has a market capitalization of $140.65 billion, a P/E ratio of 36.16, a P/E/G ratio of 2.69 and a beta of 1.18. The stock has a fifty day moving average price of $353.44 and a two-hundred day moving average price of $318.25.

Eaton Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Thursday, August 7th will be paid a dividend of $1.04 per share. This represents a $4.16 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, August 7th. Eaton's payout ratio is presently 41.98%.

Wall Street Analyst Weigh In

ETN has been the subject of a number of research analyst reports. Wells Fargo & Company raised their target price on Eaton from $310.00 to $360.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 1st. The Goldman Sachs Group upped their target price on shares of Eaton from $345.00 to $382.00 and gave the stock a "buy" rating in a research report on Tuesday, July 8th. Raymond James Financial lifted their target price on shares of Eaton from $380.00 to $415.00 and gave the company an "outperform" rating in a report on Thursday. BNP Paribas Exane assumed coverage on Eaton in a research note on Thursday, May 15th. They issued an "outperform" rating and a $380.00 target price on the stock. Finally, Barclays boosted their price objective on shares of Eaton from $340.00 to $344.00 and gave the stock an "equal weight" rating in a report on Wednesday. Seven equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $383.63.

Insider Activity

In related news, insider Craig Arnold sold 103,486 shares of the company's stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $322.75, for a total transaction of $33,400,106.50. Following the transaction, the insider directly owned 490,208 shares in the company, valued at approximately $158,214,632. This represents a 17.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.30% of the company's stock.

Institutional Trading of Eaton

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Revolve Wealth Partners LLC grew its holdings in shares of Eaton by 17.5% in the fourth quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company's stock worth $303,000 after purchasing an additional 136 shares during the last quarter. Brighton Jones LLC raised its stake in shares of Eaton by 1.4% during the fourth quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company's stock valued at $1,109,000 after acquiring an additional 45 shares in the last quarter. Finally, Empowered Funds LLC boosted its holdings in shares of Eaton by 5.6% in the first quarter. Empowered Funds LLC now owns 9,402 shares of the industrial products company's stock valued at $2,556,000 after purchasing an additional 496 shares during the period. Hedge funds and other institutional investors own 82.97% of the company's stock.

Eaton Company Profile

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.