Latest news with #Hubbell
Yahoo
9 hours ago
- Business
- Yahoo
Why Hubbell (HUBB) Stock Is Up Today
What Happened? Shares of electrical and electronic products company Hubbell (NYSE:HUBB) jumped 3.2% in the afternoon session after it agreed to acquire DMC Power, a provider of electrical grid components, for $825 million in cash. DMC Power provides critical connectors and tooling for utility substation and transmission markets. Hubbell's management stated the deal expands its presence in attractive markets, driven by growing power demand from datacenter buildouts and the need to upgrade aging infrastructure. The acquisition is expected to close by the end of 2025 and begin contributing to Hubbell's adjusted earnings per share in 2026. Supporting the stock's move was a broader rally in the Industrials sector, fueled by a favorable inflation report which raised hopes for a Federal Reserve interest rate cut. After the initial pop the shares cooled down to $432.24, up 3.5% from previous close. Is now the time to buy Hubbell? Access our full analysis report here, it's free. What Is The Market Telling Us Hubbell's shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The previous big move we wrote about was 14 days ago when the stock dropped 3.2% on the news that the company reported mixed second-quarter financial results, where a miss on revenue overshadowed a strong earnings beat. The electrical products manufacturer posted revenue of $1.48 billion, which fell short of analysts' consensus estimates of $1.51 billion. This top-line miss appeared to concern investors more than the company's otherwise strong bottom-line performance. Hubbell reported adjusted earnings of $4.93 per share, significantly surpassing Wall Street expectations. Furthermore, the company raised its full-year earnings guidance to a range of $17.65 to $18.15 per share. Despite the positive earnings and improved outlook, the market's reaction suggested that the slowdown in sales growth weighed heavily on sentiment. Hubbell is up 2.9% since the beginning of the year, and at $432.24 per share, it is trading close to its 52-week high of $472.12 from November 2024. Investors who bought $1,000 worth of Hubbell's shares 5 years ago would now be looking at an investment worth $2,939. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
14 hours ago
- Business
- Wall Street Journal
Hubbell to Buy DMC Power From Golden Gate Capital for $825 Million
Hubbell has signed a deal to buy DMC Power, a maker of connector technology systems for high-voltage power infrastructure, from private-equity firm Golden Gate Capital for $825 million in cash. Hubbell on Tuesday said DMC, which has more than 350 employees and manufacturing plants in California and Mississippi, expects revenue of about $130 million in 2026. Hubbell, a Shelton, Conn., utility and electrical solutions provider, posted sales of nearly $2.85 billion for the first six months of 2025. The company said it plans to finance the transaction with cash on hand and debt, adding that it expects to complete the acquisition by the end of the year.
The Star
15 hours ago
- Business
- The Star
Electrical component maker Hubbell to buy peer DMC Power for $825 million
U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration (Reuters) -Hubbell said on Tuesday it will acquire smaller peer DMC Power for $825 million in cash, as the electrical equipment maker bolsters its critical components portfolio to meet an expected boom in power demand. DMC designs and makes connector technology systems for high-voltage power infrastructure, and complements Hubbell's existing substation and transmission connector solutions, the acquiring firm said. Growing demand for artificial intelligence has fueled investments into modern data centers, in turn boosting the requirement for power infrastructure and components, and benefiting manufacturers like Hubbell and DMC Power. "As load growth, datacenter buildouts and aging infrastructure drive highly visible utility substation and transmission investment over the next several years, the acquisition of DMC Power expands Hubbell's strong presence in these attractive markets," said Hubbell CEO Gerben Bakker. Last month, Hubbell raised its annual profit forecast banking on strong demand for its products. DMC has more than 350 employees and two manufacturing facilities along with multiple distribution facilities located across North America, Hubbell said. Hubbell expects the deal to close by the end of this year, and boost its adjusted earnings per share in 2026. It plans to finance the transaction with a combination of cash on hand and debt. (Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
CNA
16 hours ago
- Business
- CNA
Electrical component maker Hubbell to buy peer DMC Power for $825 million
Hubbell said on Tuesday it will acquire smaller peer DMC Power for $825 million in cash, as the electrical equipment maker bolsters its critical components portfolio to meet an expected boom in power demand. DMC designs and makes connector technology systems for high-voltage power infrastructure, and complements Hubbell's existing substation and transmission connector solutions, the acquiring firm said. Growing demand for artificial intelligence has fueled investments into modern data centers, in turn boosting the requirement for power infrastructure and components, and benefiting manufacturers like Hubbell and DMC Power. "As load growth, datacenter buildouts and aging infrastructure drive highly visible utility substation and transmission investment over the next several years, the acquisition of DMC Power expands Hubbell's strong presence in these attractive markets," said Hubbell CEO Gerben Bakker. Last month, Hubbell raised its annual profit forecast banking on strong demand for its products. DMC has more than 350 employees and two manufacturing facilities along with multiple distribution facilities located across North America, Hubbell said. Hubbell expects the deal to close by the end of this year, and boost its adjusted earnings per share in 2026. It plans to finance the transaction with a combination of cash on hand and debt.
Yahoo
16 hours ago
- Business
- Yahoo
Electrical component maker Hubbell to buy peer DMC Power for $825 million
(Reuters) -Hubbell said on Tuesday it will acquire smaller peer DMC Power for $825 million in cash, as the electrical equipment maker bolsters its critical components portfolio to meet an expected boom in power demand. DMC designs and makes connector technology systems for high-voltage power infrastructure, and complements Hubbell's existing substation and transmission connector solutions, the acquiring firm said. Growing demand for artificial intelligence has fueled investments into modern data centers, in turn boosting the requirement for power infrastructure and components, and benefiting manufacturers like Hubbell and DMC Power. "As load growth, datacenter buildouts and aging infrastructure drive highly visible utility substation and transmission investment over the next several years, the acquisition of DMC Power expands Hubbell's strong presence in these attractive markets," said Hubbell CEO Gerben Bakker. Last month, Hubbell raised its annual profit forecast banking on strong demand for its products. DMC has more than 350 employees and two manufacturing facilities along with multiple distribution facilities located across North America, Hubbell said. Hubbell expects the deal to close by the end of this year, and boost its adjusted earnings per share in 2026. It plans to finance the transaction with a combination of cash on hand and debt. Sign in to access your portfolio
