Hubbell Inc. Poised for Growth as Q4 Earnings Approach
Financial Expectations on the Rise
With a market cap of $23.3 billion, Hubbell Incorporated (HUBB), based in Shelton, Connecticut, focuses on designing, manufacturing, and selling electrical and utility solutions across various sectors, including industrial, commercial, utility, and telecommunications. The company’s wide-ranging products encompass wiring devices, lighting fixtures, industrial controls, and utility infrastructure, serving customers both nationally and internationally. HUBB is expected to announce its fiscal Q4 earnings results on Tuesday, February 4.
Forecasted Earnings and Performance Trends
Analysts predict that for Q4, the electrical products manufacturer will earn a profit of $4 per share. This represents an 8.4% increase from last year’s $3.69 per share in the same quarter. Notably, HUBB has surpassed Wall Street’s bottom-line expectations consistently over the past four quarters. In Q3, the company slightly exceeded the consensus EPS estimate, contributing to its strong performance.
Looking ahead to fiscal 2024, forecasts suggest HUBB will record an EPS of $16.47, marking a 7.4% rise from $15.33 in fiscal 2023.
Stock Performance and Market Comparison
During the past 52 weeks, HUBB has climbed 34.7%, significantly outperforming the broader S&P 500 Index’s ($SPX) 24.2% rise and the Industrial Select Sector SPDR Fund’s (XLI) 18.4% rise during the same time frame.
Challenges and Market Reactions
On October 29, shares of Hubbell fell 2.1% when the company reported Q3 revenue of $1.4 billion, which did not meet analysts’ expectations, although it showed a 5% increase year-over-year. While the utility segment experienced robust 11% growth driven by power grid upgrades, the electrical segment, particularly wiring and lighting fixtures, faced a decline of about 5%, raising concerns about demand. Furthermore, the gross margin decreased to 34.5% from 35.5% the previous year, reflecting cost pressures, despite an adjusted profit of $4.49 per share slightly exceeding estimates.
Analysts’ Perspectives on HUBB Stock
Currently, analysts have a moderately optimistic outlook on Hubbell stock, giving it a “Moderate Buy” rating overall. Out of 11 analysts tracking the stock, opinions break down to four “Strong Buys” and seven “Holds.”
As of now, HUBB is trading below the average analyst price target of $479.11.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are meant solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
