Investors in Eaton Corporation plc (NYSE:ETN) had a good week, as its shares rose 4.2% to close at US$300 following the release of its first-quarter results. Results overall were respectable, with statutory earnings of US$2.45 per share roughly in line with what the analysts had forecast. Revenues of US$6.4b came in 2.0% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about Eaton. View them for free.NYSE:ETN Earnings and Revenue Growth May 5th 2025

After the latest results, the 24 analysts covering Eaton are now predicting revenues of US$27.1b in 2025. If met, this would reflect a satisfactory 6.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.5% to US$11.01. In the lead-up to this report, the analysts had been modelling revenues of US$26.8b and earnings per share (EPS) of US$11.03 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Eaton

There were no changes to revenue or earnings estimates or the price target of US$339, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Eaton at US$418 per share, while the most bearish prices it at US$270. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Eaton shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eaton's past performance and to peers in the same industry. The analysts are definitely expecting Eaton's growth to accelerate, with the forecast 9.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Eaton is expected to grow at about the same rate as the wider industry.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Eaton. Long-term earnings power is much more important than next year's profits. We have forecasts for Eaton going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Eaton has  1 warning sign  we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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