Zacks Research Issues Negative Estimate for Eaton Earnings

Key Points

• Zacks Research cut its Q1 2026 EPS estimate for Eaton (NYSE:ETN) to $2.76 from $2.83 and lowered its FY2026 outlook to $13.21 per share, slightly below the $13.31 consensus.
• Several analysts have trimmed price targets recently (Wells Fargo to $350, JPMorgan to $406), yet Eaton retains a Moderate Buy consensus with an average price target of $396.50.
• Eaton reported recent quarterly results of $3.23 EPS on $7.06 billion revenue with a 25% ROE, and announced a $1.10 quarterly dividend (annualized $4.40, ~1.0% yield), ex-dividend May 8 and payable May 29.

Eaton Corporation, PLC (NYSE:ETN - Free Report) - Research analysts at Zacks Research reduced their Q1 2026 earnings per share (EPS) estimates for shares of Eaton in a report released on Friday, April 24th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $2.76 per share for the quarter, down from their previous estimate of $2.83. The consensus estimate for Eaton's current full-year earnings is $13.31 per share. Zacks Research also issued estimates for Eaton's Q2 2026 earnings at $3.19 EPS, Q3 2026 earnings at $3.51 EPS, FY2026 earnings at $13.21 EPS, Q1 2027 earnings at $3.39 EPS, Q3 2027 earnings at $4.00 EPS, FY2027 earnings at $15.29 EPS, Q1 2028 earnings at $3.92 EPS and FY2028 earnings at $17.14 EPS.

Eaton (NYSE:ETN - Get Free Report) last released its earnings results on Thursday, February 26th. The industrial products company reported $3.23 earnings per share (EPS) for the quarter. Eaton had a return on equity of 25.00% and a net margin of 14.89%.The company had revenue of $7.06 billion for the quarter.

A number of other equities research analysts have also recently weighed in on the company. Wells Fargo & Company lowered their price target on Eaton from $370.00 to $350.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 1st. JPMorgan Chase & Co. lowered their price target on Eaton from $440.00 to $406.00 and set an "overweight" rating on the stock in a report on Friday, January 16th. Royal Bank Of Canada restated an "outperform" rating and issued a $407.00 price target on shares of Eaton in a report on Wednesday, February 4th. Jefferies Financial Group started coverage on Eaton in a report on Monday, March 16th. They issued a "buy" rating and a $430.00 price target on the stock. Finally, Sanford C. Bernstein restated an "outperform" rating on shares of Eaton in a report on Tuesday, January 27th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Eaton currently has a consensus rating of "Moderate Buy" and a consensus price target of $396.50.

Eaton Stock Performance

NYSE ETN opened at $424.02 on Monday. The stock has a market capitalization of $164.51 billion, a price-to-earnings ratio of 40.54, a PEG ratio of 2.92 and a beta of 1.17. The company has a current ratio of 1.32, a quick ratio of 0.81 and a debt-to-equity ratio of 0.45. The business's 50 day moving average is $375.09 and its two-hundred day moving average is $358.79. Eaton has a 12-month low of $283.00 and a 12-month high of $432.34.

Institutional Investors Weigh In On Eaton

A number of large investors have recently bought and sold shares of ETN. Brighton Jones LLC grew its holdings in Eaton by 1.4% during the 4th quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company's stock valued at $1,109,000 after buying an additional 45 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in Eaton by 17.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company's stock valued at $303,000 after buying an additional 136 shares during the last quarter. Empowered Funds LLC grew its holdings in Eaton by 5.6% during the 1st quarter. Empowered Funds LLC now owns 9,402 shares of the industrial products company's stock valued at $2,556,000 after buying an additional 496 shares during the last quarter. Vista Capital Partners Inc. purchased a new position in shares of Eaton during the 2nd quarter worth $259,000. Finally, Tandem Wealth Advisors LLC lifted its stake in shares of Eaton by 70.1% during the 2nd quarter. Tandem Wealth Advisors LLC now owns 2,216 shares of the industrial products company's stock worth $791,000 after purchasing an additional 913 shares during the period. Institutional investors and hedge funds own 82.97% of the company's stock.

Insider Buying and Selling

In other Eaton news, insider Sternadt Paulo Ruiz sold 10,707 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $390.26, for a total transaction of $4,178,513.82. Following the sale, the insider owned 27,729 shares in the company, valued at approximately $10,821,519.54. This represents a 27.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.10% of the company's stock.

Eaton Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 8th will be issued a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, May 8th. Eaton's dividend payout ratio is 42.07%.

About Eaton

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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