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Eaton Collaborates With Tesla to Provide Efficient Load Management

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Eaton Corporation plc (ETN - Free Report) has collaborated with Tesla Inc. (TSLA - Free Report) to boost home energy storage and solar installations. Per this collaboration, Tesla’s Powerwall will support Eaton’s new AbleEdge smart breakers and make it easier for homeowners to achieve intelligent load management that will help to optimize energy usage and extend the time of backup during a grid outage.

Utilizing the joint expertise and expansive installed base of Eaton and Tesla, these companies are bringing energy storage with load management solutions to the mainstream market. The consumers will be able to utilize dynamic, automated energy load management to intelligently extend available battery duration in case of an outage.

A transition is evident in the energy space and the operators are producing more electricity from renewable energy sources. Homeowners are looking to meet their energy needs from their own generation and not solely dependent on the grid for power supply. Eaton and Telsa will help homeowners and installers to achieve intelligent load management.

Eaton’s Everything as a Grid Assists Homeowners

Eaton’s Everything as a Grid approach supports the two-way flow of electricity, enabling homeowners to produce and consume renewable energy when they need it. For more than a century, power has flowed in one direction—from centralized power plants into homes. Courtesy of solar energy, homes can now act as energy hubs by producing their own power and sharing the excess to support the grid.

Eaton is creating flexible power systems that manage energy consumption in an integrated way and transform each home as an energy source. Electrification of nearly everything is increasing electricity demand and requires new ways to manage energy costs. More energy flowing bidirectionally, to and from the grid, will reduce the cost of energy for customers.

ETN has been developing low-cost new products for efficient energy usage. The company has laid out a 10-year plan that includes a $3 billion investment in R&D programs, which will allow the company to create sustainable products.

Eaton Expanding Operations

Eaton operates in several markets globally. Strategic acquisitions and joint ventures ("JV") allow the company to expand into new markets and enhance its revenue stream. The company completed two acquisitions in the second quarter of 2024, further strengthening its Electrical Americas and Electrical Global segment.

Eaton’s products are supplied to around 175 countries and the acquisition will further expand the operation and product offerings of the company. On June 10, 2024, Eaton formed a JV company with Malaysia-based SIA Engineering Company, which will inspect, test, repair, maintain, modify and overhaul Eaton-manufactured aircraft components installed on airframe and engine fuel systems and hydraulic systems.

Eaton’s Earnings Estimates Moving North

Riding on the back of strong performance in the first half of 2024, expanding operations and new product offerings, the company now projects adjusted earnings per share (EPS) in the range of $10.65-$10.75 for 2024, indicating an increase of 17% at the midpoint from the prior-year level. ETN raised its organic sales guidance for 2024 from 7-9% to 8-9%.

The Zacks Consensus Estimate for ETN’s 2024 and 2025 EPS has moved up 1.5% and 1.9%, respectively, in the last 60 days. The Zacks Consensus Estimate for 2024 EPS of Illinois Tool Works (ITW - Free Report) , another operator in this space, has moved up by 0.2% in the past 60 days.

Eaton’s Shares Outperform Industry

Shares of Eaton have gained 23.2% in the past year compared with its industry’s growth of 4.6%.

Zacks Investment Research
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Zacks Rank

Eaton currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 


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