Eaton (NYSE: ETN) reported earnings on April 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Eaton met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Margins expanded across the board.
Revenue details
Eaton booked revenue of $3.96 billion. The 14 analysts polled by S&P Capital IQ looked for a top line of $4.01 billion on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $3.80 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $0.92. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.90 per share on the same basis. GAAP EPS of $0.91 for Q1 were 9.6% higher than the prior-year quarter's $0.83 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 30.5%, 100 basis points better than the prior-year quarter. Operating margin was 10.1%, 90 basis points better than the prior-year quarter. Net margin was 7.9%, 40 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $4.30 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $17.10 billion. The average EPS estimate is $4.45.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 820 members out of 842 rating the stock outperform, and 22 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 252 give Eaton a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eaton is outperform, with an average price target of $58.14.
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