Eaton & Best Buy Team on EVs - Analyst Blog

Diversified power management company Eaton Corporation (ETN) announced that it has teamed up with Best Buy Co. Inc. (BBY) to provide logistical facilities for electrical vehicles, to be launched by Mitsubishi Motors North America, Inc, with an aim to boost sales.

The logistical support will be required for the new Mitsubishi's "i" model electric vehicle, which will hit the market during the fall of 2011. These new electrical vehicles will run on lithium-ion battery.

For retail consumers, Best Buy through its Geek Squad will provide site analysis and help in the upgrade of electrical infrastructure at home, while Eaton will provide both the electrical infrastructural support and Level 2 chargers to Mitsubishi Motors' dealerships.

Eaton Corporation will have the authority to design and manufacture the Level 2 charging station, which will be sold by Best Buy retailers to customers of the electric vehicle. Besides Eaton will be the only supplier and installer of Level 2 charging stations required at Mitsubishi Motors' dealers. 

The adjusted earnings of Eaton Corporation at the end of third-quarter 2010 were $1.60 per share compared with $1.21 per share in the year-ago comparable period. The company expects net and adjusted earnings for 2010 to range from $5.30–$ $5.40 per share and $5.45–$5.55 per share, respectively.

The Zacks Consensus Estimates for fourth quarter 2010, fiscal year 2010 and fiscal year 2011 are $1.65 per share, $5.56 per share and $6.98 per share, respectively.

Eaton Corporation currently retains a Zacks #1 Rank (short-term Strong Buy rating). We maintain our long-tern Outperform rating on the stock, given the transformation of the company into a diversified industrial enterprise with leading positions in its core electrical, hydraulic and aerospace market segments from an automotive and truck component manufacturer.

Based in Richfield, Minnesota, Best Buy Co operates as a retailer of consumer electronics, home office products, entertainment software, appliances, and related services.

Based in Cleveland, Ohio, Eaton Corporation deals in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.

 
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