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

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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