Hubbell (HUBB) Reports Q4 Earnings Below Analyst Estimates
* Revenue: $1.33 billion (flat year-over-year, 4.8% miss)
* Non-GAAP EPS: $4.10 (2.1% beat)
* Adjusted EBITDA: $311.4 million (3.7% miss)
* Adjusted EPS Guidance: $17.60 for fiscal year 2025 (0.6% miss)
Key Highlights:
* Double-digit growth in operating profit, EPS, and free cash flow in Q4
* Organic revenue declined 3% year-over-year
Company Overview:
Hubbell (HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.
Industry Overview:
* Electrical systems companies benefit from secular trends like connectivity and industrial automation.
* Demand for products such as cables and conduits is driven by IoT connectivity and 5G telecom upgrades.
Sales Growth:
* Hubbell's annualized revenue growth over the last five years was 4.2%, below the industrials sector benchmark.
* Annualized revenue growth over the last two years was 6.7%, but the company missed analyst estimates in Q4.
* Organic revenue growth has averaged 3.4% over the last two years, indicative of some contribution from acquisitions and foreign exchange rates.
Profitability:
* Hubbell's operating margin has averaged 16.2% over the last five years.
* Operating margin increased to 19.3% in Q4, largely due to increased efficiency in expenses.
Earnings Per Share (EPS):
* Hubbell's EPS grew at a 15.3% compounded annual growth rate over the last five years.
* EPS beat analyst estimates by 2.1% in Q4.
Valuation:
* Hubbell's stock price traded down 1.6% following the earnings release.
* The company's valuation remains under scrutiny due to missed revenue estimates and weak organic revenue growth.
For more in-depth analysis, read our full research report.