Hubbell (HUBB) Earnings Preview: What to Expect on October 29th
Get ready for Hubbell Incorporated (HUBB)’s upcoming quarterly earnings release on Tuesday, October 29th! Investors will be closely watching to see if the diversified industrial conglomerate can deliver on analysts’ expectations and provide positive guidance for the future. Here’s a breakdown of what to keep in mind as you prepare for the announcement.
Analysts’ Expectations
Analysts are projecting an earnings per share (EPS) of $4.45 for Hubbell. Bullish investors are hoping for not only a beat on this estimate, but also for the company to announce positive guidance for the next quarter. It’s crucial to understand that often, it’s not just the earnings beat or miss that moves a stock, but rather the company’s outlook and forecast for future performance.
Looking Back at Past Earnings
Hubbell has a track record of exceeding EPS expectations. In the previous earnings release, the company beat the estimate by $0.12, resulting in a 4.17% increase in the share price the following trading day. Here’s a look at their recent performance:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 4.25 | 4.37 | 4.0% |
| Q1 2024 | 3.54 | 3.60 | 1.0% |
| Q4 2023 | 3.57 | 3.69 | -3.0% |
| Q3 2023 | 4.05 | 3.95 | 3.0% |
Analyst Sentiment and Market Positioning
As of October 25th, Hubbell shares were trading at $444.52, showing a strong 67.08% increase over the past 52 weeks. This positive long-term trend will likely instill confidence in shareholders. To gain deeper insight into market expectations, it’s helpful to examine analyst opinions.
Hubbell currently has a consensus rating of Neutral, based on 10 analyst ratings. The average one-year price target is $424.0, suggesting a potential downside of 4.62%. It’s important to compare this with its peers in the industry.
Peer Comparisons: A Competitive Landscape
Here’s a breakdown of analyst ratings and one-year price targets for three prominent players in Hubbell’s space:
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Rockwell Automation:
Outperform rating with an average price target of $274.82 (potential 38.18% downside)*
nVent Electric:
Outperform rating with an average price target of $83.0 (potential 81.33% downside)*
Regal Rexnord:
Buy rating with an average price target of $196.33 (potential 55.83% downside)Key Takeaways from Peer Analysis
While Hubbell leads in revenue growth and gross profit margin among its peers, it has the lowest return on equity. These metrics provide valuable insights into the company’s relative financial health and strategic direction.
Hubbell: A Diversified Industrial Leader
Hubbell is a diversified conglomerate industrial company primarily focused on the electrical components market. Its products and services are essential to the U.S. electrical supply chain, serving transmission and distribution networks as well as commercial, industrial, and residential end markets. The company operates through two segments: Utility Solutions and Electrical Solutions, with the Utility Solutions Segment generating the majority of its revenue.
Financial Milestones: A Look at Hubbell’s Strengths
Here’s a summary of Hubbell’s key financial achievements:
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Market Capitalization:
Hubbell’s market capitalization surpasses the industry average, indicating a strong market presence and significant size.*
Revenue Growth:
Hubbell achieved an impressive 6.34% revenue growth rate as of June 30, 2024. This demonstrates a strong top-line performance.*
Net Margin:
Hubbell’s net margin of 14.68% exceeds industry benchmarks, reflecting efficient cost management and financial health.*
Return on Equity (ROE):
With a 7.13% ROE, Hubbell showcases effective use of equity capital and strong financial performance, surpassing industry averages.*
Return on Assets (ROA):
Hubbell’s ROA of 3.1% surpasses industry averages, highlighting effective asset utilization and strong financial performance.*
Debt Management:
Hubbell’s debt-to-equity ratio is below industry norms, signaling a sound financial structure with a ratio of 0.7.To stay updated on all earnings releases for Hubbell, visit our earnings calendar. This article was generated by Benzinga’s automated content engine and reviewed by an editor. We hope this comprehensive overview helps you navigate Hubbell’s upcoming earnings announcement. Remember to always conduct thorough research and consult with a financial advisor before making any investment decisions.
