Latest news with #Hubbell
Yahoo
15-05-2025
- Business
- Yahoo
HUBB Q1 Earnings Call: Softer Sales, Margin Management, and Tariff Uncertainty Highlight Quarter
Electrical and electronic products company Hubbell (NYSE:HUBB) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.4% year on year to $1.37 billion. Its non-GAAP profit of $3.50 per share was 6% below analysts' consensus estimates. Is now the time to buy HUBB? Find out in our full research report (it's free). Revenue: $1.37 billion vs analyst estimates of $1.38 billion (2.4% year-on-year decline, 1.3% miss) Adjusted EPS: $3.50 vs analyst expectations of $3.72 (6% miss) Adjusted EBITDA: $285.7 million vs analyst estimates of $301.6 million (20.9% margin, 5.3% miss) Management reiterated its full-year Adjusted EPS guidance of $17.60 at the midpoint Operating Margin: 17.5%, up from 16.3% in the same quarter last year Free Cash Flow Margin: 0.8%, down from 3.7% in the same quarter last year Organic Revenue was flat year on year (2.3% in the same quarter last year) Market Capitalization: $20.58 billion Hubbell's first quarter saw mixed performance as management cited mid-single-digit organic growth in its Electrical Solutions division and a modest rebound in grid infrastructure, offset by ongoing softness in grid automation and rising raw material costs. CEO Gerben Bakker pointed to strong data center demand and efficiency initiatives as positives, but also described the environment as warranting caution due to inflation and new tariffs. Bakker emphasized, 'We see no net change to our prior near-term and long-term views' despite a more dynamic macroeconomic backdrop. Looking forward, management maintained its full-year profit outlook, expressing confidence that recently implemented price increases and productivity actions will help neutralize cost inflation from tariffs and materials. CFO Bill Sperry highlighted that price realization is expected to catch up with cost headwinds by the second half of the year, while also acknowledging that the timing of offsetting reciprocal tariffs remains uncertain. The company continues to see strong order trends and believes it is positioned to benefit from long-term investment in grid modernization and electrification. The latest quarter was shaped by a combination of cost inflation, segment-specific demand trends, and ongoing supply chain and pricing dynamics. Management attributed deviations from expectations primarily to weaker grid automation and lagging cost recovery from tariffs and materials. Electrical Solutions outperformed: The Electrical Solutions business delivered mid-single-digit organic growth, driven by strong demand from data center projects and continued success in industrial reshoring. Margin expansion was supported by ongoing efficiency initiatives and consolidated segment strategy. Grid infrastructure rebounded: Grid infrastructure returned to organic growth after a period of customer inventory normalization. Management cited double-digit order growth and strong transmission and substation markets, reflecting increased utility investment in grid modernization. Grid automation remained soft: Grid automation sales declined by mid-teens percent due to tough comparisons with the prior year. Leadership noted that this segment is now stabilizing, with smaller projects and maintenance activity helping to establish a base level of demand. Tariffs and raw material inflation: Recent cost increases from tariffs and material inflation created a significant earnings headwind. Price increases have been enacted to offset these impacts, but management said the full benefit will be realized later in the year due to the timing of cost recognition under LIFO accounting. Order trends and customer spending plans: Management reported double-digit order growth across key markets and noted that major utility customers have raised multi-year capital plans by approximately 10%. This signals robust demand for transmission and distribution products, supporting the company's long-term growth outlook. Hubbell's outlook focuses on navigating cost pressures, capturing long-term grid investment, and managing supply chain adjustments to support profit targets. Tariff mitigation efforts: Management expects recently enacted price increases and cost-control actions to offset the impact of higher tariffs and material costs; however, there is some uncertainty about the timing, particularly for reciprocal tariffs implemented in April. Grid modernization tailwinds: The company sees sustained demand from utility customers upgrading transmission and substation infrastructure, supported by increased capital spending and secular trends in electrification. Product mix and operational efficiency: Continued growth in higher-margin segments, such as data centers and industrial reshoring, combined with ongoing productivity initiatives, is expected to support margin performance as costs are absorbed and pricing actions take effect. Jeffrey Sprague (Vertical Research): Asked about the $0.50 sensitivity in EPS guidance due to tariffs; management clarified this represents a scenario analysis, not a change to guidance, and aims to fully offset tariff impacts within the year. Charles Tusa (JPMorgan): Inquired about the pace of price realization in the second quarter; management expects sequential price increases to appear more quickly in Electrical Solutions due to shorter backlogs. Nigel Coe (Wolfe Research): Questioned price elasticity and customer reactions to price increases; management reported low elasticity so far and said broad-based pricing actions are being accepted by customers. Christopher Snyder (Morgan Stanley): Pressed on price/cost dynamics in the second half; CFO Bill Sperry confirmed management expects to be price/cost positive later in the year, offsetting first-half headwinds. Julian Mitchell (Barclays): Asked about volume assumptions for second-half growth; management pointed to strong order books, easier comparisons, and inflection in distribution and telecom enclosures as supporting factors. In the coming quarters, the StockStory team will be monitoring (1) the pace at which price increases offset raw material and tariff-driven cost inflation, (2) further recovery in grid automation demand and stabilization of order trends in distribution and telecom, and (3) evidence that utility customers' higher capital spending plans are translating into sustained order and revenue growth. Progress on supply chain diversification and updates on margin expansion initiatives will also be important indicators of execution. Hubbell currently trades at a forward P/E ratio of 21.6×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Hubbell (NYSE:HUBB) Reports Growth In Earnings Despite Sales Decline
Hubbell recently declared a regular quarterly dividend of $1.32 per share, reinforcing its commitment to returning value to shareholders. The company's share price rose by 11% over the last week, a performance that outpaced the broader market's 4% increase. This price movement might reflect investor optimism following the announcement of improved earnings results, with first-quarter net income and EPS both showing growth despite a slight decline in sales. These positive developments, along with the adoption of a majority voting standard for Director elections, may have contributed to the increase, aligning with broader market trends. Hubbell has 1 risk we think you should know about. AI is about to change healthcare. These 23 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent 11% rise in Hubbell's share price, along with a declared dividend of US$1.32 per share, suggests increased investor confidence potentially triggered by the company's improved earnings results despite a slight decline in sales. This price movement, which outpaced the market's 4% increase, may also reflect optimism about future revenue growth, driven by strong demand in the Electrical and Utility Solutions segments. Over the past five years, Hubbell's total returns, including dividends, grew by a large figure of 260.41%, showcasing robust performance. In contrast, Hubbell underperformed the US Electrical industry over the past year. Looking ahead, the adoption of a majority voting standard for Director elections and the focus on demand from data centers and grid modernization could positively affect revenue and earnings forecasts. However, risks such as tariff impacts and macroeconomic uncertainty remain. With the share price at US$348.31, it's currently trading at a 14.3% discount to the consensus price target of US$406.46, indicating potential upside if growth expectations materialize. Click to explore a detailed breakdown of our findings in Hubbell's financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:HUBB. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
05-05-2025
- Business
- Yahoo
Hubbell First Quarter 2025 Earnings: Misses Expectations
Revenue: US$1.37b (down 2.4% from 1Q 2024). Net income: US$169.4m (up 15% from 1Q 2024). Profit margin: 12% (up from 11% in 1Q 2024). The increase in margin was driven by lower expenses. EPS: US$3.17 (up from US$2.75 in 1Q 2024). We've discovered 1 warning sign about Hubbell. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 4.3%. Looking ahead, revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Electrical industry in the US. Performance of the American Electrical industry. The company's share price is broadly unchanged from a week ago. It is worth noting though that we have found 1 warning sign for Hubbell that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Hubbell (NYSE:HUBB) Projects 2025 EPS Growth Despite Q1 Sales Decline
Hubbell has recently gained attention for announcing new corporate guidance and robust financial performance for the first quarter of 2025. With the company projecting strong earnings per share and sales growth for the year, these positive financial disclosures likely contributed to the company's 3% increase in share price over the past month. Amid these announcements, broader market trends showed strength, as the S&P 500 reached its longest winning streak in two decades following a strong jobs report and improved trade outlook. Hubbell's encouraging financial results and guidance further supported the positive market momentum. Buy, Hold or Sell Hubbell? View our complete analysis and fair value estimate and you decide. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The recent corporate guidance and robust first-quarter financial performance announced by Hubbell are important as they align with the company's broader strategy to leverage data centers and renewables for future success. These developments may support the company's efforts to unify its Electrical Solutions segment and capitalize on utility market trends, potentially leading to improved margins and revenue growth. Furthermore, this positive news could impact analysts' revenue and earnings forecasts, bolstering their confidence in the company's growth trajectory and its price target of US$415.46, which sits 13.5% above the current share price of US$359.47. Over the past five years, Hubbell has delivered a total shareholder return, including share price and dividends, of 215.59%. This long-term performance reflects the company's resilience and growth potential, even as it underperformed the US Electrical industry over the past year by returning less than the industry's 6.3%. Despite near-term challenges, such as tariff uncertainties and telecom segment pressures, the optimistic guidance and market momentum offer a favorable outlook. Analysts remain relatively in agreement, predicting earnings of US$1 billion by 2028, which aligns with their expected fair value estimation, while the share price's proximity to the analyst consensus suggests a potential upside. Examine Hubbell's past performance report to understand how it has performed in prior years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:HUBB. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Hubbell (NYSE:HUBB) Reports Sales Below Analyst Estimates In Q1 Earnings
Electrical and electronic products company Hubbell (NYSE:HUBB) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 2.4% year on year to $1.37 billion. Its non-GAAP profit of $3.50 per share was 6% below analysts' consensus estimates. Is now the time to buy Hubbell? Find out in our full research report. Revenue: $1.37 billion vs analyst estimates of $1.38 billion (2.4% year-on-year decline, 1.3% miss) Adjusted EPS: $3.50 vs analyst expectations of $3.72 (6% miss) Adjusted EBITDA: $285.7 million vs analyst estimates of $301.6 million (20.9% margin, 5.3% miss) Management reiterated its full-year Adjusted EPS guidance of $17.60 at the midpoint Operating Margin: 17.5%, up from 16.3% in the same quarter last year Free Cash Flow Margin: 0.8%, down from 3.7% in the same quarter last year Market Capitalization: $19.46 billion 'Our results in the first quarter were driven by continued strong operating performance in our Electrical Solutions segment and a return to organic growth in Grid Infrastructure, offset by anticipated softness in Grid Automation and the impact of higher cost inflation' said Gerben Bakker, Chairman, President and CEO. A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets. A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Hubbell grew its sales at a tepid 4.6% compounded annual growth rate. This wasn't a great result compared to the rest of the industrials sector, but there are still things to like about Hubbell. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Hubbell's annualized revenue growth of 5% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. This quarter, Hubbell missed Wall Street's estimates and reported a rather uninspiring 2.4% year-on-year revenue decline, generating $1.37 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 6.2% over the next 12 months, similar to its two-year rate. Although this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector. At least the company is tracking well in other measures of financial health. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Hubbell has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.5%. Looking at the trend in its profitability, Hubbell's operating margin rose by 6.2 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Hubbell generated an operating profit margin of 17.5%, up 1.2 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Hubbell's EPS grew at a spectacular 15.4% compounded annual growth rate over the last five years, higher than its 4.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Hubbell's earnings to better understand the drivers of its performance. As we mentioned earlier, Hubbell's operating margin expanded by 6.2 percentage points over the last five years. On top of that, its share count shrank by 1.5%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Hubbell, its two-year annual EPS growth of 16.6% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, Hubbell reported EPS at $3.50, down from $3.60 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Hubbell's full-year EPS of $16.47 to grow 8.6%. We struggled to find many positives in these results. Its EBITDA missed significantly and its EPS fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock remained flat at $358.88 immediately after reporting. The latest quarter from Hubbell's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
