Eaton shares jump as its earnings and outlook show resilience of the AI buildout
📰 source: cnbc_topnews · 💼 business
eaton beat second-quarter estimates on friday, with revenue up 21% to a record $8.53 billion, above the $8.13 billion consensus. adjusted eps rose nearly 7% to $3.15, beating the $3.07 forecast. the power management company also raised its full-year outlook, citing demand from ai data center buildout.
shares jumped but gave back some gains as oil and bond yields rose. the company closed its acquisition of boyd thermal in march, adding liquid cooling to its product mix, and management now expects boyd to contribute $1.5 billion to sales this year, up from $1.4 billion. ceo paulo ruiz said he would be 'shocked' if the company doesn't overdeliver on that raised guidance.
management touted a record electrical backlog of $3.8 billion, up 33% year over year, and said total us data center backlog has grown to 307gw, or 15 years at 2025 build rates. the company reiterated its $450 price target but kept a 2 rating, looking for a better entry point after the 8% jump.
why it matters: eaton's q2 beat and raised outlook confirm ai data center buildout remains robust, supporting electrical equipment makers.
source: cnbc_topnews
sentiment: +0.70 · impact: 0.65