Eaton forecast full-year profit above Wall Street estimates after beating quarterly profit and revenue expectations on Thursday, as higher investments in data centers boosted demand for its electrical components.
The global appetite for data centers has remained resilient even in an uncertain economy as more businesses move to the cloud and expand artificial intelligence capabilities.
The industrial equipment maker expects a 2024 profit between $9.95 and $10.35 per share, higher than expectations of $10.06 per share, as per LSEG estimates.
The company also continues to benefit from large commercial projects associated with the Biden government’s efforts to boost manufacturing and infrastructure in the United States.
The Dublin, Ireland-based company reported an adjusted quarterly profit of $2.55 per share, compared with analysts’ estimates of $2.47 per share.
Total revenue for the quarter ended December 31 was $5.97 billion, up 11% from a year earlier. Analysts, on average, were expecting revenue of $5.91 billion in the quarter, as per LSEG data.