FY2026 EPS Estimates for Eaton Lifted by Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Eaton to $13.35 from $13.32 and reiterated a Buy rating. The new estimate is slightly above the broader consensus of $13.33 per share.
• Eaton recently posted a strong quarter, with EPS of $2.81 and revenue of $7.45 billion, both ahead of analyst expectations. The company also reaffirmed FY2026 guidance of $13.05 to $13.50 EPS.
• The stock continues to draw Wall Street support, with analysts assigning an average Moderate Buy rating and a consensus price target of $420.95. Eaton’s shares were trading near $426.51 at the time of the report.

Eaton Corporation, PLC (NYSE:ETN - Free Report) - Analysts at Erste Group Bank raised their FY2026 EPS estimates for Eaton in a research note issued on Thursday, June 25th. Erste Group Bank analyst S. Lingnau now expects that the industrial products company will post earnings per share of $13.35 for the year, up from their prior estimate of $13.32. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Eaton's current full-year earnings is $13.33 per share.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share for the quarter, beating the consensus estimate of $2.73 by $0.08. The firm had revenue of $7.45 billion for the quarter, compared to analyst estimates of $7.14 billion. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The business's quarterly revenue was up 16.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.72 earnings per share. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS.

ETN has been the subject of a number of other research reports. Jefferies Financial Group started coverage on Eaton in a research note on Monday, March 16th. They issued a "buy" rating and a $430.00 price objective for the company. Citigroup increased their target price on Eaton from $464.00 to $471.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Morgan Stanley reissued an "overweight" rating and issued a $500.00 price target on shares of Eaton in a research report on Sunday, May 10th. Wells Fargo & Company boosted their price target on shares of Eaton from $350.00 to $425.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Finally, BMO Capital Markets assumed coverage on shares of Eaton in a report on Friday, March 27th. They set an "outperform" rating and a $428.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Eaton has an average rating of "Moderate Buy" and a consensus price target of $420.95.

Eaton Stock Performance

Shares of Eaton stock opened at $426.51 on Wednesday. The business has a 50-day simple moving average of $406.63 and a 200 day simple moving average of $373.02. Eaton has a one year low of $311.92 and a one year high of $436.74. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.19 and a quick ratio of 0.75. The firm has a market capitalization of $165.61 billion, a price-to-earnings ratio of 41.69, a PEG ratio of 2.62 and a beta of 1.19.

Eaton Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 8th were issued a dividend of $1.10 per share. The ex-dividend date was Friday, May 8th. This represents a $4.40 annualized dividend and a yield of 1.0%. Eaton's dividend payout ratio is 43.01%.

Insiders Place Their Bets

In other news, Director Gerald Johnson bought 215 shares of the stock in a transaction dated Monday, May 11th. The stock was bought at an average price of $419.02 per share, for a total transaction of $90,089.30. Following the completion of the acquisition, the director directly owned 1,629 shares in the company, valued at approximately $682,583.58. This trade represents a 15.21% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Heath B. Monesmith sold 18,367 shares of the firm's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $409.11, for a total transaction of $7,514,123.37. Following the transaction, the insider directly owned 49,822 shares in the company, valued at $20,382,678.42. The trade was a 26.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 21,028 shares of company stock worth $8,614,793 in the last three months. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Eaton

Hedge funds and other institutional investors have recently modified their holdings of the business. PFA Pension Forsikringsaktieselskab purchased a new stake in shares of Eaton during the fourth quarter valued at approximately $97,989,000. SG Americas Securities LLC boosted its position in Eaton by 438.9% in the fourth quarter. SG Americas Securities LLC now owns 364,877 shares of the industrial products company's stock worth $116,217,000 after purchasing an additional 297,166 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd boosted its position in Eaton by 112.6% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 336,060 shares of the industrial products company's stock worth $120,199,000 after purchasing an additional 178,000 shares during the last quarter. Munich Reinsurance Co Stock Corp in Munich grew its stake in Eaton by 24,986.3% in the 1st quarter. Munich Reinsurance Co Stock Corp in Munich now owns 154,281 shares of the industrial products company's stock valued at $55,182,000 after purchasing an additional 153,666 shares during the period. Finally, Silvercrest Asset Management Group LLC increased its position in shares of Eaton by 23.1% during the 4th quarter. Silvercrest Asset Management Group LLC now owns 310,859 shares of the industrial products company's stock valued at $99,012,000 after purchasing an additional 58,281 shares during the last quarter. Hedge funds and other institutional investors own 82.97% of the company's stock.

Eaton Company Profile

Eaton NYSE: ETN is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company's offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.

Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.

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