Market selloff drags down Eaton shares despite positive earnings and outlook

From CNBC: 2024-08-01 15:18:56

Eaton reported quarterly beats on revenue and profit, exceeding analyst expectations. The company raised its outlook for the year. Revenue rose over 8% year over year to $6.35 billion, with organic growth up 9%. Shares of Eaton were down despite the positive results. Segment margin expanded to a record 23.7%. YTD, Eaton’s stock was up 23%. Quarterly sales were driven by data center energy demand in key segments. Backlog growth continued, indicating strong demand. Eaton is positioned well in electrification and energy transition trends. Over 400 projects valued at $1 billion each have been acquired. CEO reports strong order momentum, with 444 mega-projects announced in North America since January 2021, totaling $1.4 trillion. The company continues to negotiate projects valued at $1.3 billion. Cash flow and revenue growth increased in the second quarter, with sales growing in most segments. Despite lower expectations in cash flow results, operating and free cash flow hit records. Eaton raised full-year guidance across several key metrics, surpassing Street estimates. Quarterly earnings beat expectations, with organic revenue growth and improved segment margin. The company maintained an optimistic outlook for the future, anticipating strong growth in the third quarter.



Read more at CNBC:: Eaton shares get dragged down in the market selloff despite a nice beat and raise