Analysts Have Made A Financial Statement On Hubbell Incorporated's (NYSE:HUBB) Full-Year Report

It's been a good week for Hubbell Incorporated (NYSE:HUBB) shareholders, because the company has just released its latest annual results, and the shares gained 4.5% to US$344. It looks like the results were a bit of a negative overall. While revenues of US$5.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.3% to hit US$14.05 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Hubbell

Taking into account the latest results, the most recent consensus for Hubbell from eleven analysts is for revenues of US$5.88b in 2024. If met, it would imply a decent 9.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.3% to US$15.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.84b and earnings per share (EPS) of US$15.74 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$355, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Hubbell at US$400 per share, while the most bearish prices it at US$300. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Hubbell's growth to accelerate, with the forecast 9.4% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.8% per year. Hubbell is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$355, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hubbell going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Hubbell that you should be aware of.

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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.