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Eaton’s (NYSE:ETN) stock on Tuesday fell as much as 4.3% after the maker of electrical equipment reported quarterly revenue that matched Wall Street’s estimate.
Revenue rose 7.7% to $5.9 billion in the three-month period through March, in line with the consensus estimate of $5.9 billion.
Net income was $821 million, or $2.05 a share, compared with $638 million, or $1.60 a share, a year earlier.
Earnings adjusted for amortization, restructuring, acquisitions and divestitures were $2.40 a share, beating the consensus estimate of $2.29 a share.
Eaton’s (ETN) aerospace segment sales grew 9% from a year earlier to $871 million in the quarter, while its electrical segment for the Americas region rose 17% to $2.7 billion. Global electrical sales were flat at $1.5 billion.
Shares of Eaton (ETN) have jumped 90% in the past year on expectations that the ongoing electrification of transportation and heating will continue, while artificial intelligence technology boosts demand for data centers.
“Growth drivers like increased project activity tied to megatrends, reindustrialization and infrastructure spending continue to drive demand for Eaton’s (ETN) solutions across our markets, and we remain very confident in our teams’ ability to execute on our increased targets for the year,” Craig Arnold, chairman and chief executive of the company, said in a statement.
Management raised full-year guidance for adjusted earnings to a range of $10.20 to $10.60 a share, compared with the consensus estimate of $10.27 a share. In January, the company forecast adjusted earnings of $9.95 to $10.35 a share for the full year.
The company also forecast adjusted earnings between $2.52 a share and $2.60 a share for the second quarter this year.
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