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DUBLIN - Intelligent power management company Eaton (NYSE:ETN), with a market capitalization of $139.86 billion and currently trading at $358.16, has completed the acquisition of Resilient Power Systems Inc., a developer of solid-state transformer-based technology, the company announced Wednesday based on a press release statement. According to InvestingPro data, Eaton maintains a "GOOD" overall financial health score, positioning it well for strategic acquisitions.
The Austin, Texas-based Resilient Power Systems specializes in ultra-compact solid-state transformers that connect directly to existing distribution grids, allowing for faster deployment of EV charging stations.
"Resilient’s innovative technology, offering high density electrical power in a smaller footprint than comparable solutions, will support our customers’ need to lower costs, improve power reliability and increase efficiency," said Heath Monesmith, president and chief operating officer of Eaton’s Electrical Sector. The company’s strong market position is reflected in its impressive revenue of $25.99 billion in the last twelve months, with a healthy gross profit margin of 38.16%.
The acquisition aligns with Eaton’s strategy to invest in innovative solutions for growing global markets, particularly in data centers and energy storage. The company aims to scale Resilient’s medium voltage solid-state transformer technology for these applications.
Tom Keister, Resilient’s co-founder and CEO, stated that joining Eaton would support continued growth in new products and markets. He highlighted that their ultra-compact solid-state transformers can improve energy efficiency and reduce project deployment time.
Eaton, which reported revenues of nearly $25 billion in 2024, serves customers in more than 160 countries. The company focuses on power management solutions for various sectors including data centers, utilities, industrial, commercial, and residential markets.
Financial terms of the acquisition were not disclosed in the press release.
In other recent news, Eaton Corporation reported second-quarter earnings per share of $2.95, surpassing analyst expectations of $2.93. The company’s revenue for the quarter reached a record $7.03 billion, exceeding the consensus estimate of $6.91 billion. Eaton’s organic sales grew by 8%, contributing to an 11% increase in revenue compared to the same quarter last year. Despite these positive results, Eaton’s third-quarter guidance of $3.04 per share at the midpoint fell 2% short of expectations, leading to a decline in shares. The company also achieved segment margins of 23.9%, setting a second-quarter record. In light of its growth potential, Bernstein SocGen Group raised its price target for Eaton to $410 from $396 while maintaining an Outperform rating. Eaton also adjusted its full-year guidance upward by 50 basis points compared to Street estimates. These developments reflect a mix of strong performance and cautious outlook adjustments for the company.
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