Can Hubbell (HUBB) Retain Beat Streak This Earnings Season?
Hubbell Incorporated HUBB is scheduled to release second-quarter 2023 results on Jul 25, before market open.
The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised upward by 1.1% in the past 60 days. The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 21%.
Let’s see how things have shaped up for Hubbell this earnings season.
Hubbell Inc Price and EPS Surprise
Hubbell Inc price-eps-surprise | Hubbell Inc Quote
Factors to Note
Hubbell’s second-quarter performance is expected to have benefited from robust demand for its products and solutions, thanks to grid modernization and electrification. Strong price realization is likely to have driven the company’s top line. The Zacks Consensus Estimate for total revenues indicates a 7.5% increase from the second quarter 2022 reported figure.
Strong utility solutions orders, thanks to customers actively investing in grid hardening and resiliency initiatives, smart grid applications and broadband deployments, are expected to have boosted Utility Solutions sales. The Zacks Consensus Estimate for Utility Solutions revenues suggests a 12.5% increase from the year-ago reported figure.
Strength across the industrial end markets is expected to have aided the Electrical Solutions segment. However, softer commercial and residential end markets are likely to have partly weighed on the segment’s performance.
Lower raw material costs and improved productivity are likely to have supported Hubbell’s margins in the to-be-reported quarter.
Although HUBB’s investments in capacity and productivity augur well for its growth, the same might have partly weighed on its bottom line. Given the company’s international exposure, foreign currency headwinds might have hurt its top line.
Earnings Whispers
Our proven model predicts an earnings beat for Hubbell this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Hubbell has an Earnings ESP of +2.57% as the Most Accurate Estimate is pegged at $3.72, higher than the Zacks Consensus Estimate of $3.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hubbell currently sports a Zacks Rank #1.
Highlights of Q1 Earnings
Hubbell reported first-quarter 2023 earnings of $3.61 per share, which beat the Zacks Consensus Estimate of $2.46 per share. The bottom line soared 70% year over year. Total revenues of $1.29 billion surpassed the Zacks Consensus Estimate by 3.21%. The top line increased 11% year over year.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Emerson Electric Co. EMR has an Earnings ESP of +2.35% and a Zacks Rank #2. The company is scheduled to release third-quarter fiscal 2023 (ended Jun 30, 2023) results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emerson pulled off a trailing four-quarter earnings surprise of 4.5%, on average. The stock has gained 5.5% in the past three months.
Allegion plc ALLE has an Earnings ESP of +3.94% and a Zacks Rank #3. The company is slated to release second-quarter 2023 results on Jul 26.
Allegion delivered a trailing four-quarter earnings surprise of 12.5%, on average. The stock has rallied 17.7% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
