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Can Eaton (ETN) Keep Its Earnings Beat Streak Alive in Q1?

Eaton Corporation ETN is scheduled to release first-quarter 2021 earnings on May 4, before market open. This power management company delivered an average earnings surprise of 13.7% in the last four quarters.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

Eaton’s first-quarter earnings are likely to have benefited from 17.1 million shares repurchased by the company in 2020. Its wide global presence and gradual reopening of economic activities along with the rollout of vaccines might have benefited first-quarter earnings.

The company is also expected to have gained from cost-savings initiatives and the ongoing restructuring program.


Eaton’s first-quarter 2021 earnings are expected in the range of $1.17-$1.27 per share. Acquisitions and divestitures are expected to negatively impact earnings by 5%, while favorable foreign currency translation is likely to boost the same by 2-3% for the first quarter. Segment operating margin is expected in the range of 15.4-16.1% for the quarter.

The Zacks Consensus Estimate for the bottom line for the first quarter is pegged at $1.25 per share, indicating a 14.7% increase from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below.

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

Earnings ESP: The company’s Earnings ESP is +1.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Eaton carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can also consider the following players from the same industry that too have the right combination of elements to beat on earnings in the upcoming releases.

Regal Beloit Corporation RBC is likely to come up with an earnings beat when it reports first-quarter results on May 4. It has an Earnings ESP of +2.38% and a Zacks Rank #3.

SPX FLOW FLOW is scheduled to report first-quarter 2021 earnings on May 5. It has an Earnings ESP of +10.61% and a Zacks Rank #3.

Emerson Electric EMR is likely to come up with an earnings beat when it reports fiscal second-quarter 2021 results on May 5. It has an Earnings ESP of +3.62% and a Zacks Rank #3.

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Emerson Electric Co. (EMR): Free Stock Analysis Report
Regal Beloit Corporation (RBC): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
SPX FLOW, Inc. (FLOW): Free Stock Analysis Report
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