Electrical and electronic products company Hubbell (NYSE: HUBB) will be announcing earnings results this Tuesday before market open. Here’s what to look for.
Hubbell beat analysts’ revenue expectations last quarter, reporting revenues of $1.52 billion, up 11.1% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ organic revenue estimates but full-year EPS guidance slightly missing analysts’ expectations.
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 12.2% year on year, improving from the 2.2% 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 systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Acuity Brands reported revenues up 1.6%, topping estimates by 1.2%. Allegion traded up 9.6% following the results.
Read our full analysis of Allegion’s results here and Acuity Brands’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Hubbell is down 5.6% during the same time and is heading into earnings with an average analyst price target of $556.30 (compared to the current share price of $486.09).
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