Eaton Shares Hit All-Time High on Strong 2Q, Upbeat Outlook

By Dean Seal

Shares of Eaton hit an all-time high after the company reported better-than-expected second-quarter results and issued upbeat guidance for the third quarter and the year.

The stock was up 6.5% at $218.56 in late trading, just off an all-time high of $219.28 earlier in the day. Shares have risen 39% this year.

The Dublin, Ireland-based power-management company said it expects to log adjusted earnings, which strip out one-time items, of $2.27 to $2.37 a share in the third quarter. Analysts surveyed by FactSet had been expecting $2.24 a share.

Annual adjusted earnings are projected to be $8.65 to $8.85 a share, topping analyst forecasts for $8.46 a share, according to FactSet.

The company released the rosy outlook after posting second-quarter earnings of $744 million, or $1.86 a share, compared with $601 million, or $1.50 a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $2.21 a share. Analysts polled by FactSet had been expecting $2.11 a share.

Revenue rose to $5.87 billion from $5.21 billion in the year-ago period, topping analyst estimates of $5.76 billion, according to FactSet.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

August 01, 2023 14:51 ET (18:51 GMT)

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