Eaton lifts profit forecast as electrical equipment demand drives earnings beat
(Adds share movement in paragraph 1 and analyst comments in paragraph 3)
Oct 31 (Reuters) - Eaton Corp raised its full-year adjusted profit forecast on Tuesday and beat estimates for quarterly profit on robust demand for its electrical parts and equipment, sending its shares over 3% in morning trading.
Strengthening non-residential construction market in the U.S. along with increased investments in electric vehicles and new battery plants has boosted demand for Eaton's products including transformers, regulators and electrical switch gears.
"Seeing ETN further build backlog is supportive for both current demand and also the company's ability to sustain outsized organic growth through 2024 even in a more challenged macro backdrop," UBS analyst Chris Snyder said.
The company now expects its full-year adjusted earnings per share between $8.95 and $9.05, up from $8.65 to $8.85 it forecast earlier.
"To meet demand, we are investing more than $1 billion of capital in manufacturing to support the growth driven by electrification, energy transition and digitalization," Eaton CEO Craig Arnold said.
The company reported third-quarter revenue of $5.88 billion, compared with analysts' average estimate of $5.89 billion, according to LSEG data.
On an adjusted basis, the Dublin, Ireland-based company posted an adjusted profit per share of $2.47 for the quarter, compared with estimates of $2.34 per share.
(Reporting by Abhinav Parmar in Bengaluru Editing by Vinay Dwivedi)
