Eaton (ETN) Guidance 'Noisy' but Positive Thesis Intact, Says Analyst

February 6, 2013 11:56 AM EST
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Price: $67.14 -1.16%

Rating Summary:
    12 Buy, 18 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 13
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Yesterday Eaton Corp. (NYSE: ETN) reported Q4 EPS of $0.82, $0.11 worse than the analyst estimate of $0.93. Revenue for the quarter came in at $4.33 billion versus the consensus estimate of $4.25 billion. It also provided outlook for Q1 and FY13.

Commenting on the news, analyst David Harris of MKM said, "While the 4Q12 release contained plenty of moving pieces and guidance was noisy around a 2H recovery and acquisition accounting, we believe the long-term thesis remains intact and supports the in-process rerating on ETN's valuation."

Harris thinks the company's March 1 analyst day will create the next catalyst, and he expects management to provide an update on the Cooper integration process, which he thinks has gone favorably.

MKM Partners reiterated a Buy rating on Eaton Corporation and raised its price target to $70.00 (from $61.00).

For an analyst ratings summary and ratings history on Eaton Corporation (NYSE: ETN) click here. For more ratings news on Eaton Corporation click here.

Shares of Eaton Corporation closed at $59.37 yesterday.

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