Eaton (NYSE:ETN) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Eaton (NYSE:ETN - Get Free Report) released its earnings results on Friday. The industrial products company reported $2.72 EPS for the quarter, beating analysts' consensus estimates of $2.70 by $0.02, RTT News reports. Eaton had a return on equity of 22.62% and a net margin of 15.25%. The firm had revenue of $6.38 billion for the quarter, compared to analysts' expectations of $6.26 billion. During the same quarter in the prior year, the firm posted $2.40 earnings per share. The company's quarterly revenue was up 7.3% on a year-over-year basis. Eaton updated its FY 2025 guidance to 11.800-12.200 EPS and its Q2 2025 guidance to 2.850-2.950 EPS.

Eaton Price Performance

Shares of NYSE:ETN traded up $6.66 during midday trading on Thursday, hitting $308.86. The company's stock had a trading volume of 1,199,429 shares, compared to its average volume of 2,635,087. The company has a market cap of $121.00 billion, a P/E ratio of 32.51, a price-to-earnings-growth ratio of 2.64 and a beta of 1.14. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.96 and a current ratio of 1.50. Eaton has a 12-month low of $231.85 and a 12-month high of $379.99. The business's 50 day simple moving average is $281.59 and its 200 day simple moving average is $320.81.

Eaton Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 23rd. Investors of record on Monday, May 5th will be paid a $1.04 dividend. This represents a $4.16 annualized dividend and a yield of 1.35%. The ex-dividend date is Monday, May 5th. Eaton's dividend payout ratio is currently 41.98%.

Insider Activity at Eaton

In related news, insider Michael Yelton sold 2,120 shares of the stock in a transaction that occurred on Tuesday, May 6th. The stock was sold at an average price of $296.87, for a total value of $629,364.40. Following the completion of the transaction, the insider now directly owns 3,382 shares in the company, valued at approximately $1,004,014.34. This represents a 38.53 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Eaton

A hedge fund recently raised its stake in Eaton stock. Revolve Wealth Partners LLC increased its stake in shares of Eaton Co. plc (NYSE:ETN - Free Report) by 17.5% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 913 shares of the industrial products company's stock after purchasing an additional 136 shares during the period. Revolve Wealth Partners LLC's holdings in Eaton were worth $303,000 at the end of the most recent reporting period. Institutional investors own 82.97% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ETN shares. Evercore ISI cut their price target on shares of Eaton from $382.00 to $326.00 and set an "in-line" rating on the stock in a report on Wednesday, February 19th. JPMorgan Chase & Co. raised their target price on shares of Eaton from $289.00 to $300.00 and gave the stock an "overweight" rating in a research report on Tuesday. Melius Research reaffirmed a "hold" rating and set a $373.00 target price on shares of Eaton in a research report on Tuesday, January 28th. Jefferies Financial Group cut their price target on Eaton from $390.00 to $335.00 and set a "buy" rating on the stock in a research note on Wednesday, March 12th. Finally, KeyCorp boosted their price target on shares of Eaton from $325.00 to $355.00 and gave the company an "overweight" rating in a report on Monday. Five analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company's stock. According to data from MarketBeat, Eaton presently has an average rating of "Moderate Buy" and an average price target of $361.13.

About Eaton

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.