FINWIRES · TerminalLIVE
FINWIRES

$ETN

14 stories mentioning ETN

Every FINWIRES story that references ETN, newest first.

Wire

Dana's Merger With Eaton Mobility Unit 'Transformative,' RBC Says

Dana (DAN) proposed merger with Eaton's (ETN) Mobility unit is a "transformative deal" that boosts its exposure to a more attractive commercial vehicle market and aftermarket business, RBC Capital Markets said in a note emailed Friday.Dana believes that it can cut redundant overhead costs in both light vehicle and commercial vehicle segments on a regional basis, RBC analysts said. Purchasing was also mentioned as a significant source of cost savings, as the Eaton Mobility unit has more purchasing synergies with Dana compared with the broader Eaton portfolio, the analysts noted.Dana's recent 12% stock price drop has more to do with the deal dynamics of the merger rather than its fundamentals, according to the note.The company's shares may be range-bound in the short term, given that the deal's Reverse Morris Trust dynamics means Dana cannot buy back stock for 24 months, the analysts said. However, they said they expect shares to recover in the longer term.RBC maintained the company's stock rating at outperform and price target at $41.Price: $30.40, Change: $+0.29, Percent Change: +0.96%

$DAN$ETN
Update: Wall Street Logs Best Day in 2 Months as Trump Sparks Hope For Iran Deal
US Markets

Update: Wall Street Logs Best Day in 2 Months as Trump Sparks Hope For Iran Deal

(Updates with market moves at the end of the day and any new developments.)US equities rallied Thursday, pushing major indexes to their best day in more than two months, while oil prices tumbled after President Donald Trump signaled a breakthrough in talks with Iran to end the war.The Nasdaq closed 2.5% higher at 25,809.7, while the Dow Jones Industrial Average advanced 1.9% to 50,848.8. The S&P 500 climbed 1.8% to 7,394.3. All three indexes notched their biggest one-day percentage gains since April 8. Most sectors were in the green, led by materials and industrials, while energy saw the biggest drop.West Texas Intermediate crude oil was down 4% at $86.39 a barrel in Thursday late-afternoon trade, while Brent fell 4.4% to $89.03.Trump said on Thursday that the US "just made a great settlement of the war with Iran," subject to the "finalization of documents," CNBC reported.A deal is expected to be signed "over the next few days," he reportedly said.Earlier in the day, Trump canceled scheduled strikes against Iran following increased hostilities, including US strikes in response to Tehran shooting down an American Apache helicopter.The Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecast for this year, but raised its expectations for 2027.US Treasury yields tumbled, with the 10-year rate last down nine basis points at 4.47% and the two-year rate falling 9.8 basis points to 4.06%.In economic news, US producer prices rose more than projected in May, matching the previous month's pace, while the annual increase reached the highest since late 2022 amid surging energy costs, government data showed.On Wednesday, consumer price data showed inflation accelerating to the fastest pace in about three years last month, reinforcing expectations that the Federal Reserve will keep interest rates on hold for some time."A fresh multiyear high in consumer and producer prices underscores the pain befallen on consumers resulting from disruptions in the global energy market," Stifel said in a note. "For the Fed, dangerously high levels of inflation suggest additional accommodation is off the table, at least for now."In company news, Eaton (ETN) will combine its mobility business with auto parts supplier Dana (DAN), creating a global powertrain entity valued at more than $10 billion. Eaton shares advanced 4.8%, while Dana slumped 15%.Oracle (ORCL) shares slumped 8.5%, the second-worst performer on the S&P 500. Late Wednesday, the cloud computing company's fiscal fourth-quarter results surpassed Wall Street's estimates, driven by rising demand for cloud infrastructure amid an artificial intelligence boom.UBS Securities said Thursday the sell-off in Oracle's shares could be due in part to its higher-than-expected capital expenditure outlook for the year.Gold was up 0.9% at $4,169.10 per troy ounce, while silver rose 1.9% to $66 per ounce.

Dow JonesNasdaq CompositeS&P 500$DAN$ETN$ORCL
Update: Equities Rise Intraday, Oil Drops as Trump Cancels Iran Strikes
US Markets

Update: Equities Rise Intraday, Oil Drops as Trump Cancels Iran Strikes

(Updates with latest market prices and developments.)US benchmark equity indexes were higher intraday, while oil prices fell as President Donald Trump called off the latest round of strikes against Iran.The Dow Jones Industrial Average was up 1.5% at 50,687.4 after midday Thursday, while the Nasdaq Composite rose 1.6% to 25,563.4. The S&P 500 increased 1.2% to 7,352.8. Barring energy and communication services, all sectors were in the green, led by industrials.West Texas Intermediate crude oil was down 3.5% at $86.91 a barrel, while Brent fell 3.9% to $89.52.Trump said he has cancelled the strikes and bombings against Iran that were scheduled for later in the day."Discussions and final points have been, in both concept and great detail, approved by all parties involved," Trump said in a social media post. "The naval blockade will remain in full force and effect until this transaction is finalized -- time and place of the signing to be announced shortly."US forces launched airstrikes against Iran Tuesday after Tehran shot down an American Apache helicopter. The US fired additional missiles Wednesday.Iran's strait authority said earlier in the day that the Strait of Hormuz will be closed "until further notice" following an exchange of fire with the US, CNN reported Thursday.The Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecast for this year, but raised its expectations for 2027.US Treasury yields were lower intraday, with the 10-year rate down 6.5 basis points at 4.48% and the two-year rate falling five basis points to 4.08%.In economic news, US producer prices rose more than projected in May, matching the previous month's pace, while the annual increase reached the highest since late 2022 amid surging energy costs, government data showed.On Wednesday, consumer price data showed inflation accelerating to the fastest pace in about three years last month, reinforcing expectations that the Federal Reserve will keep interest rates on hold."A fresh multiyear high in consumer and producer prices underscores the pain befallen on consumers resulting from disruptions in the global energy market," Stifel said in a note. "For the Fed, dangerously high levels of inflation suggest additional accommodation is off the table, at least for now."In company news, Eaton (ETN) will combine its mobility business with auto parts supplier Dana (DAN), creating a global powertrain entity valued at more than $10 billion. Eaton shares were up 4.6% intraday, while Dana slumped 15%.Oracle (ORCL) shares were down nearly 12%, the worst performer on the S&P 500. Late Wednesday, the cloud computing company's fiscal fourth-quarter results surpassed Wall Street's estimates, driven by rising demand for cloud infrastructure amid an artificial intelligence boom.UBS Securities said Thursday the sell-off in Oracle's shares could be due in part to its higher-than-expected capital expenditure outlook for the year.Adobe (ADBE), Lennar (LEN) and RH (RH) are expected to report results after the closing bell Thursday, along with others.Gold was up 0.9% at $4,169.10 per troy ounce, while silver rose 1.9% to $66 per ounce.

Dow JonesNasdaq CompositeS&P 500$ADBE$DAN$ETN$LEN$ORCL$RH
Wire

Top Midday Stories: SpaceX IPO Said to Draw Over $70 Billion in Retail Orders; Oracle Earnings Top Estimates, Plans to Raise Another $20 Billion

All three major US stock indexes were up in late-morning trading Thursday, as chip stocks rebounded and in spite of heightened tensions between the US and Iran.President Donald Trump said Thursday on Truth Social that the US will hit Iran with an attack "VERY HARD TONIGHT," and that it will take control of Kharg Island sometime in the "not so distant future." Meanwhile, Iran said it will treat all of Elon Musk's companies operating in the Middle East as military targets, CNBC reported, citing a report by Iranian state media outlet Fars.In company news, SpaceX's initial public offering, which prices Thursday, has drawn over $70 billion in orders from retail investors, Bloomberg reported, citing people familiar with the matter. Retail investors are likely to be allocated at least 20% of the available shares. At SpaceX's target IPO size of $75 billion, that allocation would leave the majority of retail demand unfulfilled, the report said, citing the people and Bloomberg's own calculations.Oracle (ORCL) reported fiscal Q4 adjusted earnings late Wednesday of $2.11 per diluted share, up from $1.70 a year earlier and above the FactSet consensus analyst estimate of $1.96. Fiscal Q4 revenue was $19.18 billion, up from $15.90 billion a year ago and above the FactSet consensus of $19.10 billion. For fiscal Q1, the company said it expects adjusted EPS of $1.72 to $1.76 on revenue growth of 27% to 29%. Analysts expect EPS of $1.68. For full-year 2027, the company said it expects adjusted EPS of $8.05 on revenue of $90 billion. Analysts expect $8.02 and $88.78 billion, respectively. Oracle's gross margin fell by about 5 points in 2026, and Chief Financial Officer Hilary Maxson said the company expects gross margin to fall further in 2027 "due to timing for the ramp-up of our data center projects into their full revenue contribution, plus impacts from mix." Oracle is expected to have a net cash outlay for capital expenditures of around $70 billion in fiscal 2027, up from $48 billion a year ago, it said. Finally, the company said it plans to raise about $40 billion via debt and equity issuances in fiscal 2027, including its previously announced $20 billion stock sale. Oracle shares were down 11.1% around midday.Amazon (AMZN) said Thursday its global data center footprint used 2.5 billion gallons of water in 2025, as the tech giant provided an update for its 2030 goal of returning more water to the communities where it operates than what it uses for its data centers. The tech giant returned three gallons for every four it used last year, meaning it is 75% of the way to its water-positive goal, it said. Amazon shares were down 0.4%.Dana (DAN) has agreed to merger with Eaton's (ETN) Mobility unit in a Reverse Morris Trust transaction valued at $5.1 billion, the companies said Thursday. Eaton will receive a $1.1 billion cash distribution, while its shareholders will take a minimum 50.1% equity stake in the new business, the companies said. The combined entity will retain the Dana name and will be led by Chief Executive Byron Foster, the companies said. The deal is expected to close in Q1 2027, they said. Dana shares were down 10.5%, while Eaton shares were up 2.0%.Super Micro Computer (SMCI) said Thursday that it plans to raise up to $7 billion through a package of equity and equity-linked financing transactions. The company said it will sell 45.5 million common shares at $27.50 apiece, raising net proceeds of $1.22 billion. Super Micro shares were up 0.3%.Price: $179.00, Change: $-22.26, Percent Change: -11.06%

$AMZN$DAN$ETN$ORCL$SMCI
Eaton to Combine Mobility Unit With Dana, Creating $10 billion Powertrain Systems Provider
US Markets

Eaton to Combine Mobility Unit With Dana, Creating $10 billion Powertrain Systems Provider

Eaton (ETN) will combine its mobility business with auto parts supplier Dana (DAN), creating a global powertrain entity valued at more than $10 billion, the companies said in separate statements Thursday.The transaction is structured as a Reverse Morris Trust, under which Eaton will first separate the mobility unit. Dana will then merge with a subsidiary of the mobility business and emerge as the serving entity, according to the companies.The deal values the mobility business at about $5.1 billion. Eaton shareholders will own at least 50.1% of the combined entity, with Dana's investors holding the remaining 49.9%. Eaton will receive a cash distribution of approximately $1.1 billion prior to completion of the transaction.The deal values the combined company, which will operate as Dana, at more than $10 billion in enterprise value, the companies said. The transaction, which requires approval from Dana's shareholders and clearance from regulators, is expected to complete in the first quarter of 2027.Dana's shares plunged 16% as trading got underway on Thursday, while Eaton gained 1.4%.The transaction will integrate Dana's global powertrain, thermal and sealing technologies with the mobility business' commercial vehicle transmissions, engine and emissions products. The combined entity is estimated to have $11 billion in sales on a pro forma basis."Eaton shareholders will benefit from the meaningful upside created by the combined company, and the transaction will provide substantial cash value for Eaton to deploy to our highest-growth and highest-margin opportunities," Chief Executive Paulo Ruiz said in a statement.The separation is part of Eaton's portfolio transformation and allows it to focus on its electrical and aerospace segments. Earlier this year, the company announced its intention to spin off the mobility business into a publicly traded company.Eaton estimates the deal to be immediately accretive to its organic growth rate and operating margins. The companies expect the transaction to generate $250 million in run-rate cost synergies."This transaction marks an important milestone in our transformation," Dana's incoming CEO, Byron Foster, said. "By expanding our presence in core markets with new products and complementary technologies, we are enhancing our ability to deliver greater value to customers while strengthening margins through a more balanced portfolio and meaningful synergies."Foster and Dana Chief Financial Officer Timothy Kraus will lead the combined company in their respective current roles. R. Bruce McDonald, Dana's current CEO and chairman, will serve as executive chairman of the combined entity.Dana is now targeting $14 billion to $15 billion in sales by 2030, up from its previous target of roughly $10 billion, Kraus said.

$DAN$ETN
Wire

NextEra, Dominion Merger Reinforces Power Infrastructure Supercycle Thesis, Wedbush Says

NextEra Energy (NEE) and Dominion Energy's (D) merger shows that the "AI-driven power demand supercycle is not a cyclical trade but a decades-long infrastructure build," Wedbush said in a note Monday.In the grid infrastructure and data center space, Quanta Services (PWR) and Willdan (WLDN) will be direct beneficiaries of the deal, Wedbush said, adding that a combined NextEra and Dominion spanning Florida, Virginia, North Carolina, and South Carolina will need a "sustained acceleration in transmission, substation, and distribution buildout."In the equipment and power management sector, Vertiv (VRT) and Eaton (ETN) are poised to benefit from scale procurement, the note said, adding the combined company's emphasis on "supply chain scale and procurement efficiency points directly to accelerating orders for thermal management, power conversion, and switchgear."In the power generation and fuel supply space, Constellation Energy (CEG), Vistra (VST), and Talen Energy (TLN) will likely also benefit from "demand confirmation," Wedbush said, adding the deal's "explicit framing of surging large-load demand" will support independent power producers serving the same Mid-Atlantic and Southeast regions.Meanwhile, for the materials and enabling technologies sector, the "nuclear infrastructure thesis" will likely be boosted, Wedbush said, as the combined company's position as the second largest in US nuclear generation will back the "long-term investment case for the nuclear supply chain."Cameco (CCJ), BWX Technologies (BWXT), and NuScale Power (SMR) are the companies most directly linked to nuclear fuel, services, and reactor deployment, the note said.Price: $88.37, Change: $-5.00, Percent Change: -5.35%

$BWXT$CCJ$CEG$D$ETN$NEE$PWR$SMR$TLN$VRT$VST$WLDN
Research

Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Eaton Corporation Plc

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Following Q1 results, we lift our 12-month target to $500 from $425, valuing shares at 31.5x our 2027 EPS outlook of $15.86 (up from $15.45; 2026 EPS view raised to $13.47 from $13.40), above ETN's long-term multiple average given surging demand trends within the company's core markets. ETN reported record revenue of $7.5 billion, fueled by an impressive 240% increase in data center orders and continued strength in aerospace markets, which swelled backlogs to new record levels. This top-line growth, however, was partially offset by margin pressure due to a negative price-cost lag and the front-load of expenses tied to 12 new factories that are being built to meet rising order levels. ETN has implemented price increases that we expect to bring price/cost to neutrality and will contribute to the stabilization of margins in the coming quarters. The company raised its full-year organic growth guidance to 10% and reaffirmed its full-year 2026 EPS outlook.

$ETN
Wire

Eaton Datacenter Orders Surge, Growth Outlook Strengthens Into H2, RBC Says

Eaton (ETN) is executing well across datacenters, utility and electrification, with strong order momentum and backlog growth supporting an expected pickup in organic volume, operating leverage and margin expansion in H2, RBC Capital Markets said.Datacenter demand was a standout, with orders rising 240% year on year, alongside strong backlog growth across segments. Electrical Americas backlog increased 44%, Electrical Global backlog rose 73% and the order pipeline expanded 81%, the brokerage said in a Tuesday note.The outsized contraction in Electrical Americas margins in Q1 was attributed to capacity ramps and commodity inflation in steel, copper, aluminum and silver ahead of April 1 price increases. However, the Boyd Thermal acquisition is tracking above its previously guided $1.7 billion full-year sales, potentially adding upside, RBC said.The firm described the margin pressure as a "high-quality problem" tied to accelerating backlog and capacity expansion.The company's plan to spin off its Vehicle and eMobility segments by end of Q1 2027 is expected to further shift Eaton's mix toward higher-growth datacenter and aerospace exposure, according to the note.RBC reiterated its outperform rating on the stock and boosted its price target to $484 per share from $457.Price: $418.82, Change: $+7.96, Percent Change: +1.94%

$ETN
Wire

Update: Market Chatter: Goldman Sachs-Backed Boyd Offers Deeply Discounted Loan

(Updates with Goldman Sachs' response in the third paragraph.)Boyd Corp., backed by Goldman Sachs Asset Management, is offering a deeply discounted loan to refinance its capital structure following the sale of its liquid-cooling business to Eaton (ETN), Bloomberg reported Monday.Initial talks on its $530 million loan involve an interest rate 4.5 percentage points above benchmark, that is being offered at a discounted price of as low as 92 cents on the dollar, the report said, citing a person with knowledge of the matter.Goldman Sachs declined to comment when contacted by.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $920.17, Change: $+16.90, Percent Change: +1.87%

$ETN$GS
Research

Research Alert: Eaton: Q1 Results Surpass Targets; Data Center Demand Surging

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ETN delivered record Q1 sales of $7.5B (+17% Y/Y) with 10% organic growth exceeding its 5-7% guidance range, while operating EPS reached a record $2.81 (+3%), topping consensus of $2.73. Strong operational execution was evident despite margin pressures from M&A and capacity investments. We see ETN's $11B in strategic acquisitions, including Boyd Thermal ($9.6B) and Ultra PCS ($1.5B), as aligning the company further with high-growth, high-margin data center and aerospace markets. Management lifted organic sales growth guidance to 9-11% from 8%, projecting segment margins of 24.1-24.5% for 2026 and operating EPS of $13.05-$13.50. Order momentum accelerated with Electrical Americas bookings up 42% organically and total backlog expanding significantly (Electrical +48%, Aerospace +28%). We view ETN as well-positioned for accelerated growth following the planned Mobility spin-off by Q1 2027, capitalizing on electrification and digitalization trends.

$ETN
Wire

Market Chatter: Goldman Sachs-Backed Boyd Offers Deeply Discounted Loan

Boyd Corp., backed by Goldman Sachs Asset Management, is offering a deeply discounted loan to refinance its capital structure following the sale of its liquid-cooling business to Eaton (ETN), Bloomberg reported Monday.Initial talks on its $530 million loan involve an interest rate 4.5 percentage points above benchmark, that is being offered at a discounted price of as low as 92 cents on the dollar, the report said, citing a person with knowledge of the matter.Goldman Sachs did not immediately respond to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $904.16, Change: $-19.56, Percent Change: -2.12%

$ETN$GS
Wire

Honeywell International Sets June 29 Target for Aerospace Spin-Off Completion

Honeywell International (HON) said Tuesday that it expects to complete the spin-off of its aerospace business on June 29 and has named the incoming board for the standalone Honeywell Aerospace.The spin-off will create one of the largest publicly listed pure-play aerospace and defense companies, with Honeywell aiming to unlock value and sharpen its strategic focus, it said.Honeywell's new 11-member board will be led by former Eaton (ETN) chief executive officer Craig Arnold as independent chair, with Honeywell Aerospace CEO Jim Currier also joining the board alongside other industry leaders, the company added.Price: $212.91, Change: $+0.86, Percent Change: +0.41%

$ETN$HON
Wire

Eaton Keeps Quarterly Dividend at $1.10 per Share, Payable May 29 to Shareholders of Record May 8

Eaton Keeps Quarterly Dividend at $1.10 per Share, Payable May 29 to Shareholders of Record May 8

$ETN
Research

RBC Raises Price Target on Eaton to $457 From $439, Keeps Outperform Rating

Eaton (ETN) has an average rating of overweight and mean price target of $415.80, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

$ETN