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Eaton, a manufacturer of food management solutions for AI data centers and other commercial markets, delivered a solid quarter on Friday which raised more questions for us than they answered. Action by action for the first quarter finished in March increased by more than 33% compared to the period of the previous year to $ 2.72, beating the estimate of the consensus of the compiled analyst LSEG by a penny. Revenues increased by 7.3% to $ 6.38 billion, beating the consensus of the compiled analyst of $ 6.26 billion. Organic sales increased by 9%, far exceeding the Bloomberg estimate for an increase of 6.8%. Eaton why we have it: Eaton has an exposure to several important megatons such as electrification, energy transition and infrastructure expenses. He is also a generative AI player, where data centers use his power management solutions and electrical equipment to follow the increased demand for more computing power. We see a long track for growth. Competitors: Parker-Hannifin, Dupont and Honeywell The most recent purchase: April 3, 2025 Initiated: November 15, 2023 Bottom Liner during our morning meeting, Jim Cramer said he was concerned. In the afternoon trade, Eaton's actions have become positive on a solid global market. However, the stock struggled to return to its closing top in 2025 $ 371 on January 22, which was just a few days before the more efficient artificial model of Deepseek Deepseek slammed the IA trade. Jim said he was not ready to abandon Eaton because he “is fine”, referring to the largely positive results and advice of the company. Indeed, the company declared accelerating the growth of organic sales with record margins of the first quarter. However, he said he had to rethink the position, given the club's positions in Dupont and Dover also has links with the IA trade. He also has an eye on Ge Vernova in the enclosure of the lifts to fill the theme with electrification / energy production. Etn Ytd Mountain Eaton Ytd in addition to the income and Beat d'Eaton, sales at three of the five segments of the company – the electric Americas, the electric world and the aerospace were better than expected, with solid growth. The other two segments, vehicles and email have missed, the first flow by almost 15% of one year on the other and the second only 2.5%. Orders for the Electric Americas segment, which represent almost half of the company's total revenues, have dropped 4% organically over a 12 -month rolling average. Excluding a large order of the multi -year data center in the first quarter of 2024, orders increased by 4%. Jeff Marks, director of portfolio analysis for the club, said on Friday that the market seemed to be aware of the slowdown in the order while Eaton and all multinational companies are trying to understand the price of President Donald Trump. The slowdown in order growth was a multi-quarter trend due to the difficult compositions dating back to 2023. “The billiard book remained above one, with a growth of 6% in our large backlog of $ 10.1 billion, offering high visibility for our organic growth in 2025 and beyond,” said the director Olivier Leonetti when Company. The final data center market represents 17% of Eaton's total income, according to the company's growth hypotheses in 2025. During the call, the new CEO, Paulo Ruiz, referred to the technological companies that declared profits this week, which included club names Amazon, Meta Platforms and Microsoft, saying: “All the calls that we have spent this week, Hyperscalers have confirmed the level of capex. CAPEX means capital expenditure and TCAC means an annual growth rate composed. Ruiz will become CEO after the retirement of May 31 of Craig Arnold, which has been at the helm since 2016. Management has also talked about the conceptions of the Data Center for the future which oblige Eaton to work not only with hyperscalers, large technological companies that manage facilities, but also with chip manufacturers. “Consequently, you must have open discussions with people like … Nvidia and so on. Few companies, especially foreign companies, can have a dialogue with them. Eaton, which aims to manage through prices, plans to adjust its costs, supply chains and prices if necessary. Ruiz said:” We will see how the price is evolving. We expect the time to recover from a point of view of the margin, but not this year. “The company plans to fully compensate for the impact of prices through the USMCA, the American agreement of Mexico-Canada 2020, compliance, optimization of the supply chain, control of disciplined costs and business actions. Region-à-Région offers a competitive advantage. adjusted BPA from $ 2.85 to $ 2.95 below. The management said on the appeal that these forecasts reflect “the net impact of the prices announced and assumes that the current 90 -day break on reciprocal prices will persist until the end of the year”. (Jim Cramer's Charitable Trust is Long Etn, DD, Dov, Amzn, Meta, MSFT, NVDA. See here for a full list of actions.) As abonten at the CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim has an exchange. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. The above information of investment clubs is subject to our terms and conditions and our privacy policies, as well as our warning. No obligation or fiduciary duty exists, or is created, due to your reception of the information provided in relation to the investment club. 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Reports Eaton Corporation to the NYSE
Source: NYSE
EatonA manufacturer of power management solutions for AI data centers and other business markets provided a solid quarter on Friday which raised more questions for us it did not answer.
