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With a market cap of $23.3 billion, Shelton, Connecticut-based Hubbell Incorporated (HUBB) designs, manufactures, and sells electrical and utility solutions for industrial, commercial, utility, and telecommunications markets. The company’s diverse portfolio includes wiring devices, lighting fixtures, industrial controls, and utility infrastructure products, serving customers across the United States and globally. HUBB is set to release its fiscal Q4 earnings results on Tuesday, Feb. 4.
For Q4 earnings results, analysts forecast the electrical products manufacturer to post a profit of $4 per share, a growth of 8.4% from $3.69 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In Q3, HUBB exceeded the consensus EPS estimate by a slight margin.
For fiscal 2024, analysts expect HUBB to report EPS of $16.47, an increase of 7.4% from $15.33 in fiscal 2023.
Over the past 52 weeks, HUBB has climbed 34.7%, outperforming the broader S&P 500 Index's ($SPX) 24.2% rise and the Industrial Select Sector SPDR Fund's (XLI) 18.4% rise over the same period.
Shares of Hubbell fell 2.1% on Oct. 29 due to its Q3 revenue of $1.4 billion falling short of analyst expectations, despite a 5% year-over-year growth. While the utility segment saw strong 11% growth driven by power grid upgrades, sales in the electrical segment, including wiring and lighting fixtures, declined by about 5%, raising concerns about demand in that area. Additionally, the gross margin slipped to 34.5% from 35.5% the previous year, signaling cost pressures despite the adjusted profit of $4.49 per share slightly exceeding estimates.
Analysts' consensus rating on Hubbell stock is moderately optimistic with a "Moderate Buy" rating overall. Out of 11 analysts covering the stock, opinions include four "Strong Buys" and seven "Holds."
As of writing, HUBB is trading below the average analyst price target of $479.11.
