BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Eaton (ETN) stock drops 8% on good news]]>http://www.bloggingstocks.com/2008/07/17/eaton-etn-stock-drops-8-on-good-news/http://www.bloggingstocks.com/2008/07/17/eaton-etn-stock-drops-8-on-good-news/http://www.bloggingstocks.com/2008/07/17/eaton-etn-stock-drops-8-on-good-news/#commentsFiled under: , , , ,

Diversified industrial manufacturer Eaton Corporation (NYSE: ETN) posted some great numbers for 2Q 2008. Investors responded by pushing the stock down 8% as a result. Go figure. With the exception of its automotive segment, which saw a modest 2% decline in sales, all other divisions posted double digit sales increases with demand remaining strong going forward. 2Q sales increased 32%, net income increased 35%, while net income on a per share basis increased 24% The company posted these results despite the fact that oil prices increased 40% during the quarter.

The FAA recently awarded a $40 million contract for power quality equipment. The company's Hydraulic Launch Assist technology performed very well in tests on trash trucks. It reduced fuel costs by 25% and significantly reduced brake service costs. With diesel prices showing no signs of decline, demand for this technology will be very strong when it becomes commercially available in late 2008. CEO Alexander Cutter forecasts FY sales growth to be 3% in the U.S. and 5% internationally. FY operating EPS are forecast to grow 12-16%, resulting in EPS of $7.70-$8.00. At this rate of return, the stock is currently bargain-priced around $73.00

Eaton (ETN) stock drops 8% on good news originally appeared on BloggingStocks on Thu, 17 Jul 2008 12:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aerospaceAlexander CutlerAlexanderCutlerEaton CorporationEatonCorporationETNFAAhydraulicsindustrialsinthenewspower trainPowerTrainThu, 17 Jul 2008 12:17:00 EST