Eaton was another name in the earnings confessional this morning, announcing third-quarter net income of $258 million, or $1.71 per share. This is a 4% increase from year-ago levels of $248 million ($1.62 per share). Excluding items, ETN would have booked $1.79 per share, or 12 cents better than analysts' expectations.
Revenue at the industrial manufacturer grew 7% to $3.3 billion, edging out Street expectations of $3.24 billion.
Looking ahead, ETN expects fourth-quarter sales to be roughly flat with third-quarter numbers, and earnings to fall in a range of $1.60 to $1.70 per share. The company also narrowed its full-year earnings view to a per-share estimate of $6.50 to $6.60 per share, from its previous guidance of $6.50 to $6.70 per share. In other projections, ETN expects gradual weakness from the North American auto market through the remainder of the year.
In early trading, Eaton shares have dropped more than 3%, breaking south of their 10-week and 20-week moving averages. The stock's long-term uptrend remains in check, however; ETN has been advancing along its 10-month moving average since mid-2003.