Eaton (NYSE:ETN) Updates Q3 2025 Earnings Guidance

Key Points

• Eaton has updated its Q3 2025 earnings guidance, projecting earnings per share (EPS) between $3.010 and $3.070, which is below the consensus estimate of $3.088.
• The company's stock price has declined 6.2%, closing at $360.98 after the earnings guidance announcement, with significant trading activity recorded.
• Eaton declared a quarterly dividend of $1.04 per share, with an annualized yield of 1.2%, reflecting a payout ratio of approximately 41.98%.

Eaton (NYSE:ETN - Get Free Report) updated its third quarter 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 3.010-3.070 for the period, compared to the consensus earnings per share estimate of 3.088. The company issued revenue guidance of -. Eaton also updated its FY 2025 guidance to 11.970-12.170 EPS.

Eaton Stock Down 6.2%

Eaton stock traded down $23.78 on Tuesday, hitting $360.98. 4,905,329 shares of the stock traded hands, compared to its average volume of 3,062,089. Eaton has a 1 year low of $231.85 and a 1 year high of $399.56. The company has a current ratio of 1.31, a quick ratio of 0.84 and a debt-to-equity ratio of 0.41. The business's fifty day simple moving average is $352.19 and its 200 day simple moving average is $317.69. The firm has a market cap of $141.25 billion, a P/E ratio of 36.38, a price-to-earnings-growth ratio of 2.88 and a beta of 1.18.

Eaton (NYSE:ETN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.92 by $0.03. Eaton had a return on equity of 23.41% and a net margin of 15.55%. The firm had revenue of $7.03 billion during the quarter, compared to the consensus estimate of $6.93 billion. During the same period last year, the company earned $2.73 earnings per share. The company's revenue was up 10.7% on a year-over-year basis. As a group, sell-side analysts forecast that Eaton will post 12.02 earnings per share for the current year.

Eaton Dividend Announcement

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

Analyst Ratings Changes

Several analysts recently weighed in on the company. BNP Paribas initiated coverage on Eaton in a report on Thursday, May 15th. They set an "outperform" rating and a $380.00 price target on the stock. BNP Paribas Exane started coverage on Eaton in a research note on Thursday, May 15th. They issued an "outperform" rating and a $380.00 price target for the company. Sanford C. Bernstein restated an "outperform" rating and issued a $396.00 price objective on shares of Eaton in a research note on Monday, July 14th. Barclays raised their target price on Eaton from $323.00 to $340.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 9th. Finally, KeyCorp lifted their price target on Eaton from $355.00 to $410.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 15th. Seven analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $377.89.

Insider Activity at Eaton

In related news, insider Craig Arnold sold 103,486 shares of the stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $322.75, for a total value of $33,400,106.50. Following the transaction, the insider directly owned 490,208 shares in the company, valued at $158,214,632. This represents a 17.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ETN. Brighton Jones LLC grew its holdings in 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 purchasing an additional 45 shares during the period. Revolve Wealth Partners LLC grew its holdings in Eaton by 17.5% during the fourth quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company's stock valued at $303,000 after purchasing an additional 136 shares during the period. Finally, Empowered Funds LLC grew its holdings in Eaton by 5.6% during 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. 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.

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