Eaton Corporation plc (NYSE:ETN) reported first-quarter results that exceeded analyst expectations, though its stock dropped more than 3% in premarket trading after issuing guidance that came in slightly below forecasts.
The power management company posted adjusted earnings per share of $2.81, ahead of the $2.73 consensus estimate. Revenue reached $7.5 billion, rising 17% year over year from $6.4 billion and surpassing the $7.13 billion analyst forecast.
Despite the earnings beat, shares fell 3.42% following the release.
Organic sales grew 10%, outperforming the company’s prior guidance range of 5% to 7%. However, Eaton’s full-year adjusted EPS outlook of $13.05 to $13.50 came in just below expectations, with the midpoint of $13.28 slightly under the $13.30 consensus.
The company also raised its full-year organic growth forecast to 9% to 11%, up from the previous 8% to 10% range, citing strong demand across its end markets. For the second quarter, Eaton expects adjusted EPS between $3.00 and $3.10, with the midpoint of $3.05 marginally below analyst estimates.
“Strong demand across our markets drove solid first quarter performance, highlighted by order strength, backlog growth and our team’s continued discipline and focus on operational execution,” said Paulo Ruiz, chief executive officer.
Eaton completed approximately $11 billion in strategic acquisitions during the quarter, including Boyd Thermal and Ultra PCS Limited.
The Electrical Americas segment delivered record sales of $3.6 billion, up 20% year over year, with rolling 12-month orders increasing 42% organically, driven in part by demand from data centers. Total backlog in the Electrical segment rose 48% compared to the prior year.
In Aerospace, sales reached a record $1.1 billion, up 16% year over year, with operating margins improving to 26.7%, an increase of 360 basis points.
Meanwhile, the Mobility segment, which Eaton plans to spin off by the first quarter of 2027, reported sales of $766 million, down 2% from a year earlier.