Eaton Corporation (ETN)

Eaton's price dropped roughly a tenth in just one week, its sharpest slide in months.

What is going on right now?

The stock fell to around $382, slipping below where it had been trading for most of the past year. This happened even as news about strong profits at a major chip supplier hinted that demand for data-center equipment, which Eaton builds, could keep growing.

How is the business itself doing?

Eaton makes electrical and aerospace parts, the kind of equipment that keeps buildings powered and planes running. Sales grew about 21% last quarter, but the company's actual profit shrank roughly 16%.

What stands out?

Sales climbing while profits fall means costs are eating into what the company keeps. Its profit on each dollar of sales sits at about 13 cents.

What comes next?

Eaton's next earnings report lands around November 3, and it will show whether the gap between rising sales and falling profits is narrowing or widening.