Eaton Corporation (NYSE:ETN) Reports Par Course 3Q Results


Dallas, Texas 10/31/2013 (Financialstrend) – The S&P 500 index tracked Eaton Corporation (NYSE:ETN) has a market cap of $33.75 billion. In the past week it has been reiterated by two different rating agencies indicating the steady confidence that the stock is experiencing since its 3Q results announcements on October 25.

On October 28, both rating agencies UBS and Barclays have reiterated their neutral and heavy weight ratings on the stock respectively. The target price of the stock has also been increased to $72 and $74 respectively by the two rating agencies. The reiteration in the potential of the stock is happening due to the $1.12 earnings per share announcement coupled with revenue of $5.6 billion.

Since the 3Q operations results announcement, the stock has posted close to 5.1% gain in its market value.  As of close of business on October 30, the stock was trading at $71.20 per share slightly down from its previous day close. At current valuations, the stock is trading almost with in touching distance to its 52 week high valuation.

In the past 12 months, the company has posted sales of $19.2 billion and net income of $1.4 billion. Some of the profits has been routed to the share holders in the form of dividend payout. During the 12 month trailing period, the company paid out dividend of $1.68 per share translating to a dividend yield of 2.36%. Its sales went up 37% in the 3Q compared to 3Q of FY12. Investors who had invested into the stock 1 year back would be seeing a appreciation of 61% in their investments. Post the recent earnings call, the management of the firm have given indications that the 4Q operations are expected to yield more revenue.