StockCall Scrutinizes Eaton and Exide Technologies: Industrial Goods Sector Faces Challenges
LONDON, February 22, 2013 /PRNewswire/ --
Industrial equipment sector is going through a consolidation phase. Exide Technologies (NASDAQ: XIDE) decided to shut down its Frisco plant as it prepares to face the penalty for violating environmental laws. The company also reported higher-than-expected quarterly revenue; however, its stock is still losing value. On the other hand, Eaton Corporation plc (NYSE: ETN) is still moving up as it grew in triple figures in the past 12 months. The stock has been creating new highs lately and is likely to remain in a bullish mode for quite some time. StockCall reviewed the solar industry and chose Eaton and Exide Technologies for its technical coverage. These free reports can be seen for free at
Exide Technologies Faces Penalty
Exide Technologies recently announced its third quarter results. The company reported its revenue at $804.9 million, beating consensus estimate of $77.3 million. However, its margins dipped down. For the fourth quarter, the company is expected to earn revenue of $763.2 million and its EPS is estimated to be at 11 cents per share. The stock lost 13 percent of its value in the past 12 months and it slid 22 percent so far this year. However, it is expected to pick up and recoup its losses. Register for today's free analysis on Exide Technologies at
Exide Technologies is running into some regulatory problems as well as it faces penalties against its Frisco plant. The Texas Commission on Environmental Quality plans to charge the plant for failing to prevent the unauthorized discharge of hazardous waste. The fine may be as high as half a million. However, Exide Technologies has plans to decommission the plant. The company has been reporting disappointing quarterly results for quite some time, but is likely to get back on track this year. Last quarter, Tontine Asset Management diluted its stake in the company. But the situation is not altogether bleak as the fund still holds 4.2 million shares of the company.
Eaton Corporation Acquires Cooper Industries
Eaton Corporation is on the growth trajectory as its stock recently created new 52-week high. The company is a diversified power management outfit and is operational worldwide. For the fourth quarter of 2012, the company reported its earnings at 46 cents per share, down from $1.07 it had earned for the corresponding quarter of the last year. However, the loss was mainly due to charges related to the company's acquisition of Cooper Industries. The company had bought Cooper Industries for $13 billion and the deal is likely to be beneficial in the long-term. Download the free research on Eaton Corp. by signing up now at
Eaton Corp.'s stock gained 10 percent so far this year, while its growth over the last 12-month period stands at an astounding 168 percent. The company also offers 2.56 percent dividend yield. Despite its steep run up, the company is still an attractive investment option. Its recent acquisition of Cooper Industries will let it grow in the newer markets and will generate new revenue streams. The company now has access to over 150 markets around the globe. Cooper Industries specialized in power distribution and safety solutions. Eaton Corporation is also part of a collaborative effort of Ford and Whirlpool Corporation to deliver smart home solutions.
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