Eaton on Thursday morning delivered quarterly beats on its top and bottom lines. Segment profit margin and organic sales growth topped estimates. Management also raised its outlook for the year. Despite that show of strength, shares of the industrial Club name were trading lower. Revenue in the second quarter increased over 8% year over year — up 9% organically —, to a new record of $6.35 billion, outpacing analyst expectations of $5.34 billion, according to estimates compiled by LSEG.
Arnold also said that roughly 40% of announced projects over the past year are related to data centers and power generation/renewables. "In many ways, this is a once-in-a-lifetime opportunity in that the megatrends we shared are having a broad and significant impact on the growth outlook for most of our end markets," he explained.