Electrical products maker Hubbell beats Q3 adjusted EPS estimates on data center demand
Overview
Hubbell Q3 revenue grows 4% yr/yr but misses analyst expectations
Adjusted EPS for Q3 beats analyst estimates, reflecting strong operational performance
Company raises 2025 adjusted EPS outlook, citing strong margin expansion and lower tax rate
Outlook
Hubbell raises 2025 adjusted EPS outlook to $18.10-$18.30
Company anticipates 3-4% organic sales growth for 2025
Hubbell expects 2025 free cash flow conversion of approximately 90%
Result Drivers
ELECTRICAL SOLUTIONS GROWTH - 8% organic growth driven by demand in datacenter and light industrial markets
GRID INFRASTRUCTURE GROWTH - 8% organic growth in Grid Infrastructure due to strong T&D markets and infrastructure investment
LOWER TAX RATE - Decreased tax rate contributed to earnings growth, driven by international restructuring benefits
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.50 bln | $1.54 bln (10 Analysts) |
Q3 Adjusted EPS | Beat | $5.17 | $4.98 (11 Analysts) |
Q3 EPS | $4.77 | ||
Q3 Net Income | $256.70 mln | ||
Q3 Adjusted Operating Margin | 23.90% | ||
Q3 Free Cash Flow | $254 mln | ||
Q3 Operating Margin | 22% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Hubbell Inc is $458.00, about 5.2% above its October 27 closing price of $433.98
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago
Press Release:
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