Eaton Corp. Trounces Estimates

Full-year guidance is raised.
Author:
Publish date:

Eaton's

(ETN) - Get Report

first-quarter earnings rose 11% from a year ago, topping estimates, and the company guided its full-year profit higher.

Eaton earned $208 million, or $1.36 a share, in the quarter, compared with $187 million, or $1.19 a share, a year ago. Excluding items, earnings were $1.40 a share in the most recent quarter, beating the Thomson First Call consensus estimate by 8 cents a share.

Revenue rose 14% to $3.01 billion, also beating forecasts. The increase included 9 percentage points of organic growth and 6 percentage points from acquisitions, offset by currency translation. End markets rose by 7%, Eaton said.

For the second quarter, Eaton expects to earn $1.55 to $1.65 a share before charges. Analysts were forecasting earnings of $1.61 a share in the period. For the full year, Eaton expects to earn $6.10 to $6.40 a share before charges. Analysts had been forecasting earnings of $6.17 a share in the year.

"We now anticipate 4% growth in our end markets in 2006, slightly higher than we originally anticipated," the company said. "In the first quarter, the worldwide electrical and hydraulics markets were stronger than we had expected. In addition, the NAFTA heavy-duty truck market started the year with considerably stronger growth in both production and orders than we had anticipated."

Eaton closed at $74.62 on Thursday.