Hubbell Earnings: Here’s Why Investors Like These Results

Hubbell (NYSE:HUB-B) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.52%.

Hubbell Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.2% to $1.37 in the quarter versus EPS of $1.29 in the year-earlier quarter.

Revenue: Was the same at $801.3 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: Hubbell reported adjusted EPS income of $1.37 per share. By that measure, the company beat the mean analyst estimate of $1.31. It missed the average revenue estimate of $802.64 million.

Quoting Management: David G. Nord, President and Chief Executive Officer, said, “I am pleased with our performance in the quarter which included both higher sales and operating margin compared to 2012. The sales increase was due to the impact of acquisitions while our base business was in line with last year`s strong results. From a profitability perspective, we were able to expand our operating margin by fifty basis points despite incurring costs associated with facility consolidations in our Power segment. I am also pleased to announce that we completed the acquisition of Connector Manufacturing Company during the second quarter. CMC manufactures high quality mechanical and compression connectors and has been added to our Electrical segment.”

Key Stats (on next page)…

EPS increased 24.55% from $1.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.61 to a profit $1.62. For the current year, the average estimate has moved down from a profit of $5.46 to a profit of $5.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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