Profit Soars at Eaton

Driven by strong sales growth in the hydraulics and truck markets, Eaton's (ETN) second-quarter earnings nearly doubled, beating the Street estimates by a penny.

In addition, the company boosted its guidance for the third quarter and full year.

In a press release Thursday, the company said earnings rose to $161 million, or $1.03 a share, from $93 million, or 64 cents a share, a year earlier.

Excluding restructuring charges, net income rose to $161 million, or $1.03 a share, from $99 million, or 68 cents a share. On that basis, analysts had expected the company to earn $1.02 a share.

Sales rose 19% to $2.4 billion, as revenue was stronger than expected in the hydraulics and truck markets as well as the residential electrical market. Although the company anticipates this strength to continue, nonresidential construction and European markets segments are "not expecting significant growth" until next year.

However, the company boosted third-quarter earnings guidance to $1.05 to $1.15 a share and full-year guidance to between $4 and $4.15 a share.

Analysts had been expecting the company to earn $1.03 in the third quarter and $3.99 for the year.

Shares of Eaton were recently up 60 cents, or 1%, to $63.21.

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