Electrical and electronic products company Hubbell (NYSE: HUBB) will be reporting earnings this Tuesday morning. Here’s what you need to know.
Hubbell beat analysts’ revenue expectations last quarter, reporting revenues of $1.71 billion, up 15.3% year on year. It was a strong quarter for the company, with full-year EPS guidance beating analysts’ expectations and a solid beat of analysts’ organic revenue estimates.
Is Hubbell a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hubbell’s revenue to grow 23.8% year on year, improving from the 4.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hubbell has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hubbell’s peers in the electrical equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 3.3%, and Acuity Brands reported revenues up 2.9%, falling short of estimates by 1.1%. Allegion traded up 12.6% following the results while Acuity Brands’s stock price was unchanged.
Read our full analysis of Allegion’s results here and Acuity Brands’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the electrical equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Hubbell is down 4.4% during the same time and is heading into earnings with an average analyst price target of $555.54 (compared to the current share price of $445.16).
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