Eaton , a maker of power management solutions for AI data centers and other commercial markets, delivered a solid quarter on Friday that raised more questions for us than it answered. Earnings per share for the first quarter ended in March rose more than 33% from the year-ago period to $2.72, beating the LSEG compiled analyst consensus estimate by a penny. Revenue rose 7.3% to $6.38 billion, beating the LSEG compiled analyst consensus estimate of $6.26 billion. Organic sales grew 9%, far exceeding the Bloomberg estimate for a 6.8% increase. Eaton Why we own it: Eaton has exposure to several important megatrends like electrification, energy transition, and infrastructure spending. It is also a player in generative AI, where data centers use its power management solutions and electrical equipment to keep up with the heightened demand for more computing power. We see a long runway for growth. Competitors : Parker-Hannifin , DuPont and Honeywell Most recent buy : April 3, 2025 Initiated : Nov. 15, 2023 Bottom line Has Eaton’s stock peaked? During our Morning Meeting, Jim Cramer said he’s concerned about it. In afternoon trading, shares of Eaton turned positive in a strong overall market. However, the stock has been struggling to get back to its 2025 closing high of $371 on Jan. 22, which was just days before the Chinese startup DeepSeek’s more efficient artificial intelligence model slammed the AI trade. Jim said he’s not ready to give up on Eaton, because it’s “doing quite well,” referring to the company’s largely positive first-quarter results and guidance. Indeed, the company reported accelerating organic sales growth with record first-quarter margins. However, he did say he needs to rethink the position, given the Club’s positions in DuPont and Dover also have ties to the AI trade. He also has his eye on GE Vernova in the Bullpen to fill out the electrification/power generation theme. ETN YTD mountain Eaton YTD In addition to Eaton’s revenue and EPS beats, sales at three of the company’s five segments — Electrical Americas, Electrical Global, and Aerospace were better than expected, with solid growth. The other two segments, Vehicle and eMobility missed, with the former sinking nearly 15% year over year and the latter up just 2.5%. Orders for the Electrical Americas segment, which accounts for nearly half of total company revenue, fell 4% organically on a 12-month rolling average. Excluding one large multi-year data center order in the first quarter of 2024, orders rose 4%. Jeff Marks, director of portfolio analysis for the Club, said Friday the market seemed to be aware of the order slowdown as Eaton and all multinational companies try to figure out President Donald Trump ‘s tariff endgame. Slowing order growth has been a multi-quarter trend due to tough comps going back to 2023. “Book-to-bill remained above one, with 6% growth in our large $10.1 billion backlog, providing strong visibility for our organic growth in 2025 and beyond,” CFO Olivier Leonetti said on the company’s post-earnings call. The data center end-market makes up 17% of Eaton’s total revenue, according to the company’s 2025 growth assumptions. On the call, incoming CEO Paulo Ruiz referred to the tech companies that reported earnings this week, which included Club names Amazon , Meta Platforms , and Microsoft , saying, “all the calls we have had this week, all the hyperscalers have confirmed the level of capex. So, we believe that this 15% CAGR for data centers is still intact.” Capex stands for capital expenditures, and CAGR stands for compound annual growth rate. Ruiz will become CEO following the May 31 retirement of Craig Arnold, who has been at the helm since 2016. Management also talked about the data center designs of the future that require Eaton to work with not only the hyperscaler clients, the big tech companies that run the facilities, but also with chipmakers. “Therefore, you need to have open discussions with the likes of … Nvidia and so on. Not many companies, especially foreign companies, can have a dialogue with them. So again, this is another entry barrier that creates” opportunity for Eaton in this development area of the end market, Ruiz said on the call. Eaton, which aims to manage through the tariffs, plans to adjust its costs, supply chains, and prices as needed. Ruiz said, “We will see how the tariff evolves. We expect over time to recover from a margin standpoint, but not this year.” The company expects to fully offset the impact of tariffs through USMCA, the 2020 United States-Mexico-Canada Agreement, compliance, supply chain optimization, disciplined cost containment, and commercial actions. Eaton believes its region-for-region strategy provides a competitive advantage. Guidance Eaton raised its full-year organic sales growth guidance range to 7.5% to 9.5% from 7% to 9%, but slightly lowered its segment margins outlook as a result of tariff cost pass-through. The company reaffirmed its full-year EPS guidance. The company’s second quarter adjusted EPS guidance of $2.85 to $2.95 was short of estimates. Perhaps, management was being a little conservative here. The outlook for Q2 organic sales growth and segment margins was fine. Management said on the call that these forecasts reflect the “net impact of the announced tariffs and assumes the current 90-day pause on reciprocal tariffs will persist to 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 the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Eaton Corporation signage at the NYSE
Source: NYSE
Eaton, a maker of power management solutions for AI data centers and other commercial markets, delivered a solid quarter on Friday that raised more questions for us than it answered.
Tesla has opened orders for the Model Y Long Range RWD for $45,000 in the US. It’s the new entry-level Model Y following the design refresh earlier this year.
Since launching the updated Model Y earlier this year, Tesla has only offered the best-selling electric SUV in a single Long-Range AWD configuration.
First, it was as a fully-loaded $60,000 Launch Edition, and last month, it started deliveries of the regular Model Y AWD starting at $49,000.
Now, the automaker is starting to take orders for the new Model Y Long Range RWD
The new trim starts at $44,990 and enables 357 miles of range – an extra 30 miles over the AWD version.
However, due to its single motor powertrain, the lower-priced version is slightly slower with a 0-60 mph acceleration in 5.4 seconds rather than 4.6 seconds.
The automaker says that deliveries of the new version will start in the US in the next 3 to 5 weeks. It launched the new Model Y RWD in Europe weeks ago.
Tesla also offers a Standard Range RWD in Europe and China for even cheaper, and deliveries have already started in China.
Electrek’s Take
Tesla appears to have waited to open orders for the Model Y RWD in the US to optimize demand for the Long Range AWD.
But now it needs a cheaper model to sustain demand at the current production rate.
In the coming weeks, it will start building a mix of RWD and AWD in Fremont and Austin to
Interestingly, Tesla currently only offers the subsidized 1.99% financing rate on the Model Y Long Range AWD. I would assume that Tesla plans to take advantage of the boost in demand that the cheaper model will create.
However, US buyers probably won’t have to wait more than a few weeks before Tesla starts to offer lower interest rates on all versions, like it already does in Europe and China.
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On today’s thrilling episode of Quick Charge, we’ve got some of the highlights of the 2025 ACT Expo, including the all-electric Windrose and Mack Pioneer Class 8s trucks, a hydrogen fuel sell [sic] from Honda, a fun charging surprise, and – after an eight year wait – we finally get a ride in the all-new (in 2017) Tesla Semi!
ACT Expo is North America’s premier clean truck and transport trade show – and for 2025 it was bigger than ever, with more exhibitors and more, more capable battery electric vehicles than ever. The downsides? NACFE have scored with their “messy middle” messaging, and the return of “clean diesel” talking points. We’ve got a brief rundown and links to all the details, below.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Abundance Energy, sonnen, and Energywell are teaming up to bring smarter, more resilient energy to Texas homes through a huge new virtual power plant (VPP) initiative.
By combining behind-the-meter home batteries, solar power, and advanced energy software, the trio is building a network of connected homes that can work together to support the grid. Customers who install sonnenConnect home batteries through Abundance Energy will now be part of a system that automatically stores and shares power when it’s needed most. That means lower electricity bills, better reliability during extreme weather, and a cleaner energy mix overall.
The VPP will cover all of ERCOT, with the primary focus in the greater Dallas-Fort Worth and Houston areas. Each home will have two 4.8kW/20kWh sonnenCore+20 battery units. The current customer base that will be enrolled in the VPP equals 60 MWh, and this will continue to grow each month. The VPP is already on track to replace Tesla as the largest virtual power plant in Texas by the end of 2026.
Here’s how it works: The batteries are continuously managed using Energywell’s Proton platform and sonnen’s smart VPP technology. This system monitors solar generation, customer energy use, and real-time electricity prices, and then decides when to charge or discharge each battery. Instead of just sitting idle, these batteries turn into mini power plants that can react to grid needs in real time.
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And when thousands of batteries work together, they form a virtual power plant—a decentralized network that reduces the strain on the grid, especially during peak demand or power outages. Unlike traditional power plants, VPPs don’t burn fossil fuels. They use clean, stored electricity from homes and businesses, helping cut carbon emissions while keeping the lights on.
“Our mission is to empower homeowners with smarter, more sustainable energy solutions,” said Thomas Mandry, CEO of Abundance Energy. “This partnership delivers a new kind of VPP model that benefits customers and strengthens the Texas grid.”
Blake Richetta, CEO of sonnen, added, “With Abundance Energy and Energywell, we’re showing how everyday homeowners can become part of the solution to Texas’ energy challenges.”
As Texas continues to face grid reliability issues, especially in extreme heat or cold, this kind of flexible, customer-powered energy system will make homes more resilient and give customers more control over their power.
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
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