Hubbell Catches Analysts Sleeping Again

Seth Jayson, The Motley Fool
Updated

Hubbell (NYS: HUB.B) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hubbell beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins expanded, and net margins grew.

Revenue details
Hubbell recorded revenue of $740.0 million. The six analysts polled by S&P Capital IQ anticipated sales of $708.2 million. Sales were 16% higher than the prior-year quarter's $639.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.17. The eight earnings estimates compiled by S&P Capital IQ anticipated $1.10 per share. GAAP EPS of $1.17 for Q4 were 44% higher than the prior-year quarter's $0.82 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.9%, 40 basis points worse than the prior-year quarter. Operating margin was 14.8%, 60 basis points better than the prior-year quarter. Net margin was 9.5%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $700.7 million. On the bottom line, the average EPS estimate is $0.96.

Next year's average estimate for revenue is $3.02 billion. The average EPS estimate is $4.86.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hubbell is outperform, with an average price target of $69.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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