Eaton on Target

It guides in line.
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Eaton (ETN) - Get Report beat third-quarter targets and guided in line for the fourth quarter, citing slowing in its end markets.

The Cleveland-based diversified manufacturer made $213 million, or $1.39 a share, from continuing operations for the quarter ended Sept. 30. That's up from the year-ago $197 million, or $1.29 a share. The company made $1.62 a share including discontinued operations results, beating the $1.59 Thomson Financial target.

Sales rose to $3.12 billion from $2.77 billion a year earlier, matching the Wall Street estimate.

"In light of the slowing growth rate in our overall end markets, we anticipate that net income per share for the fourth quarter of 2006 will be between $1.45 and $1.55, and as a result, we are narrowing our guidance for net income per share for full year 2006 to between $6.07 and $6.17," Eaton said. "Operating earnings per share, which exclude charges to integrate our recent acquisitions, are anticipated for the fourth quarter of 2006 to be between $1.50 and $1.60, with operating earnings per share for full year 2006 to be between $6.23 and $6.33."

Analysts were looking for $1.58 a share for the quarter and $6.25 for the year.