- Hubbell Incorporated recently reported second quarter earnings, raised its full-year earnings outlook, and reaffirmed its quarterly dividend, while indicating an ongoing focus on acquisitions and capital allocation.
- A unique facet is the company's commitment to further acquisitions even as it strengthens its position through share buybacks and a renewed sales and earnings outlook, highlighting a balanced approach to growth and profitability.
- We'll explore how the raised full-year guidance and acquisition focus shape Hubbell's investment narrative and future growth prospects.
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Hubbell Investment Narrative Recap
To be a shareholder in Hubbell today, it makes sense to have confidence in the company’s ability to drive sustained growth through a balanced mix of acquisition activity and disciplined capital returns. The most important near-term catalyst is the company’s raised full-year earnings guidance, while the biggest risk remains exposure to rising input costs and tariffs, risks that the latest updates have not fundamentally altered for now. Of the recent announcements, the raised earnings outlook for 2025 stands out. Management now guides for diluted EPS of US$16.25 to US$16.75, alongside 4% to 6% projected sales growth, framing the improved profitability as central to offsetting lingering cost pressures and supporting further investment initiatives. Yet in contrast, investors should stay alert to ongoing tariff and supply chain risks that could still impact near-term results...
Read the full narrative on Hubbell (it's free!)
Hubbell's outlook anticipates $6.7 billion in revenue and $1.0 billion in earnings by 2028. This is based on an annual revenue growth rate of 6.2% and reflects a $170.9 million increase in earnings from the current $829.1 million.
Uncover how Hubbell's forecasts yield a $453.92 fair value, a 6% upside to its current price.
Exploring Other Perspectives
Three members of the Simply Wall St Community provided fair value estimates for Hubbell, ranging widely from US$200 to US$453.92 per share. While these opinions differ, cost inflation and tariff exposure could have a meaningful impact on the company’s future returns, so consider these factors when weighing the array of viewpoints.
Explore 3 other fair value estimates on Hubbell - why the stock might be worth less than half the current price!
Build Your Own Hubbell Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Hubbell research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Hubbell research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hubbell's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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