Eaton Corp’s (NYSE:ETN) Stocks Are Seeing a Bright Future
Eaton Corp PLC (NYSE:ETN) saw a lot of difference in their US and international growth. The results were announced during the Q3 conference and the situation is quite alarming for the company (NYSE:ETN). However, there is some good news too which has neutralized the effect of the above mentioned issue. In fact the CEO, Sandy Cutler, was quite alarmed at the problem and described the situation as “A Tale of Two Cities”.
Anyhow the US sector seems to have made excellent business during the quarter and was regarded as stronger of the “Two Cities”. The American sector alone makes up more than half of the company’s (NYSE:ETN) total income while the international market was the main reason behind this growth gap. Eaton’s (NYSE:ETN) CEO has also expected next year’s growth to be identical. Moreover they pointed out that the US growth was about 3% whereas, the international market growth rate was only about 1%.
However, if the condition remains stagnant in the coming year the company (NYSE:ETN) would not have difficulty in keeping its shares high. Reports show that Eaton PLC (NYSE:ETN) is performing extraordinarily in other divisions. The electrical business is doing quite well with 61% of the revenues while the aerospace and vehicle divisions are giving 8% and 17% respectively. Besides this, the company (NYSE:ETN) has already received future bookings in the mentioned sectors.
It is quite hopeful for 2015 and appears relaxed, but the only sector lagging in business is the hydraulics division and to be specific the agricultural sector. Although there has been a lot of drop in the international market but the company is very confident and they are sure that they would easily maneuver out of this drop. Moreover, the acquisition of the Cooper Industries back in 2012 is paying off quite well now and all they see is a bright future.
The company (NYSE:ETN) will get a chance to enhance it business and acquire more locations. Eaton (NYSE:ETN) is expecting some $260 million in the coming years from the synergy sector. Although a major portion of this amount came from cost reductions but other achievements like revenue benefits and building of relationships also contributed to this amount. Moreover, the aerospace region which is currently the smallest division also poses for a bright future for the company and hopes to flourish in the coming years or so.
The expansion in businesses all over the world will provide Eaton (NYSE:ETN) with enough ground for its small businesses to develop and even multiply. Boeing has expected the aviation fleet to double during 2013-33 and this multiplication definitely means more business for the company (NYSE:ETN) which supplies key instruments like couplings, pumps, ground support systems etc. So we see Eaton (NYSE:ETN) is doing quite well and has kept up the business despite the drop in international markets.
Analysts believe that this fact alone is enough for bringing Eaton’s stock prices up and make way for their development.