ETN - Eaton Keeps Finding More Ways To Grow
2024-05-01 07:40:32 ET
Summary
- Eaton Corporation delivered record sales growth and margin expansion in Q1, with Electrical Americas segment leading the way.
- Smaller construction projects below the mega project category are also contributing to new business opportunities for Eaton.
- The stock is more richly valued than it was 3 months ago, even when normalizing for the higher growth.
- Eaton is still a great company but the share price is more than fair, making the stock a Hold.
More Than Just Mega Projects
Eaton Corporation ( ETN ) delivered another record quarter in Q1 2024 . Electrical Americas was the standout segment, growing sales 17% from a year ago. Operating margin in this segment expanded 6.3 percentage points, from 22.9% to 29.2%. As a result, operating profit for Electrical Americas was up a stunning 50% from last year. For the overall company, the result was 8% sales growth, 3.4 percentage points of margin growth to 23.1%, and adjusted EPS growth of 28% to $2.40 from $1.88 last year. Looking forward, Eaton raised EPS guidance for 2024 to $10.20 - $10.60, 14% growth from 2023 and 2.5% above initial 2024 guidance....
Eaton Keeps Finding More Ways To Grow