From CNBC: 2024-04-30 15:22:08

Eaton posted strong quarterly results, beating revenue and earnings expectations. Revenue grew 8% to $5.94 billion, surpassing estimates. Adjusted earnings per share hit $2.40, a first-quarter record. Segment margin expanded to 23.1%, exceeding expectations. The company has exposure to growth trends in electrification, energy transition, and infrastructure spending.

Despite a 2% stock slip, Eaton is well-positioned to benefit from long-term growth opportunities. With a focus on power management solutions, the company has secured numerous projects in North America worth over $1 billion each since January 2021. Demand for AI computing power in data centers is a key driver of growth for Eaton.

Eaton’s Electrical Americas division achieved record sales and profitability in the first quarter, driven by demand in the data center market. The Aerospace division also saw strong performance. The company raised its full-year guidance, expecting organic sales growth of 7% to 9% and adjusted earnings per share between $10.20 and $10.60.

In the second quarter, Eaton anticipates organic revenue growth of 6.5% to 8.5% and adjusted earnings per share of $2.52 to $2.62. The company’s positive outlook is fueled by strong demand in the Electrical Americas segment, particularly from AI data center buildouts. With a focus on key growth trends, Eaton is poised for continued success.



Read more at CNBC:: We are hiking our price target on Eaton as demand for AI heats up