Zacks Research Issues Negative Outlook for Eaton Earnings

Eaton Co. plc (NYSE:ETN - Free Report) - Zacks Research decreased their Q4 2025 earnings per share (EPS) estimates for shares of Eaton in a research note issued to investors on Tuesday, June 10th. Zacks Research analyst J. Saha now forecasts that the industrial products company will post earnings per share of $3.22 for the quarter, down from their previous forecast of $3.25. The consensus estimate for Eaton's current full-year earnings is $12.02 per share. Zacks Research also issued estimates for Eaton's Q3 2026 earnings at $3.61 EPS, Q4 2026 earnings at $3.52 EPS, FY2026 earnings at $13.53 EPS, Q1 2027 earnings at $3.41 EPS and FY2027 earnings at $14.83 EPS.

Several other research firms have also weighed in on ETN. Morgan Stanley lowered their target price on shares of Eaton from $385.00 to $375.00 and set an "overweight" rating on the stock in a report on Tuesday, May 6th. Jefferies Financial Group lowered their price target on Eaton from $390.00 to $335.00 and set a "buy" rating for the company in a research note on Wednesday, March 12th. BNP Paribas Exane began coverage on Eaton in a report on Thursday, May 15th. They issued an "outperform" rating and a $380.00 price target for the company. Evercore ISI raised their target price on shares of Eaton from $326.00 to $349.00 and gave the stock an "in-line" rating in a report on Monday, May 19th. Finally, Barclays upped their price target on shares of Eaton from $306.00 to $323.00 and gave the company an "equal weight" rating in a report on Monday. Five investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $368.78.

Eaton Stock Performance

ETN stock traded down $7.08 during trading on Friday, reaching $323.26. 1,565,268 shares of the stock were exchanged, compared to its average volume of 2,641,084. Eaton has a twelve month low of $231.85 and a twelve month high of $379.99. The company has a current ratio of 1.50, a quick ratio of 0.96 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $126.49 billion, a P/E ratio of 34.03, a price-to-earnings-growth ratio of 2.64 and a beta of 1.16. The stock has a 50 day simple moving average of $303.34 and a 200-day simple moving average of $315.40.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings data on Friday, May 2nd. The industrial products company reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.70 by $0.02. Eaton had a return on equity of 22.62% and a net margin of 15.25%. The business had revenue of $6.38 billion during the quarter, compared to analyst estimates of $6.26 billion. During the same period last year, the company earned $2.40 earnings per share. Eaton's quarterly revenue was up 7.3% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ETN. Nuveen LLC purchased a new stake in Eaton in the first quarter valued at approximately $1,472,231,000. Norges Bank acquired a new position in shares of Eaton in the 4th quarter valued at $1,495,582,000. GAMMA Investing LLC raised its position in Eaton by 27,281.9% in the 1st quarter. GAMMA Investing LLC now owns 3,593,321 shares of the industrial products company's stock valued at $976,772,000 after purchasing an additional 3,580,198 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in Eaton by 85.4% during the 1st quarter. Ameriprise Financial Inc. now owns 3,629,464 shares of the industrial products company's stock worth $986,966,000 after purchasing an additional 1,672,175 shares during the period. Finally, Capital International Investors purchased a new position in Eaton during the 4th quarter worth $523,541,000. Hedge funds and other institutional investors own 82.97% of the company's stock.

Insider Transactions at Eaton

In related news, insider Michael Yelton sold 2,120 shares of the firm's stock in a transaction dated Tuesday, May 6th. The shares were sold at an average price of $296.87, for a total transaction of $629,364.40. Following the completion of the sale, the insider now directly owns 3,382 shares in the company, valued at approximately $1,004,014.34. This trade represents a 38.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Craig Arnold sold 103,486 shares of the stock in a transaction on Monday, May 12th. The stock was sold at an average price of $322.75, for a total value of $33,400,106.50. Following the transaction, the insider now owns 490,208 shares of the company's stock, valued at approximately $158,214,632. This represents a 17.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 156,660 shares of company stock valued at $49,622,894. Corporate insiders own 0.30% of the company's stock.

Eaton Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 23rd. Stockholders of record on Monday, May 5th were issued a $1.04 dividend. The ex-dividend date was Monday, May 5th. This represents a $4.16 dividend on an annualized basis and a dividend yield of 1.29%. Eaton's dividend payout ratio is presently 41.98%.

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.