Eaton (ETN) reported third-quarter sales of $8.9 billion, up 28%, and its shares rose about 1.8% on Tuesday. Organic sales grew 19%, orders and backlog hit records, and management raised its organic growth guidance. However, GAAP EPS rose only 7% to $2.77, as acquisition debt and amortization absorbed much of the extra operating profit. Net interest expense nearly tripled to $198 million, while adjusted EPS, which excludes these charges, reached $3.68 versus $3.07. The next thing to watch is whether fourth-quarter organic growth lands in the guided 13% to 15% range, compared with 19% this quarter.
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