Eaton (NYSE:ETN) raised its full-year profit forecast, after beating analysts' expectations for the first quarter on Tuesday, betting on resilient demand for industrial equipment amid the U.S. government's efforts to boost manufacturing.
Large commercial projects associated with the Biden government's efforts to boost manufacturing and infrastructure in the United States benefited companies such as Eaton, which makes electrical components, including those used in data centers.
The government's infrastructure push covers about 40,000 projects, including airports, bridges, roads, construction of recharging stations for electric vehicles and improving access to high-speed internet.
"Growth drivers like increased project activity tied to megatrends, reindustrialization and infrastructure spending continue to drive demand for Eaton's solutions across our markets," said CEO Craig Arnold.
Eaton expects its 2024 adjusted profit to be between $10.20 and $10.60 per share, compared with its prior forecast range of $9.95 to $10.35 per share.
The Dublin, Ireland-based company posted adjusted profit of $2.40 per share for the first quarter, versus analysts' average estimate of $2.29 per share, according to LSEG data.
Its total revenue was $5.94 billion for the quarter ended March 31, up 8% from a year earlier. Analysts, on average, expected $5.91 billion.