Is Revenue Miss Despite EPS Growth Shifting the Investment Case for Hubbell (HUBB)?

• In the past quarter, Hubbell reported revenues of US$1.50 billion, representing 4.1% year-over-year growth but coming in 1.6% below analyst expectations.
• An interesting detail is that despite delivering double-digit adjusted earnings per share growth, the company showed the weakest performance against analyst estimates among its peer group for the quarter.
• We'll explore how Hubbell's shortfall in meeting revenue expectations may affect the company's investment narrative and analyst outlook.

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Hubbell Investment Narrative Recap

To own Hubbell shares, an investor needs confidence in the long-term demand for electrical and utility infrastructure solutions, with the company's recent earnings highlighting solid growth in both revenue and profit. While the latest results showed a modest revenue shortfall versus analyst expectations, this is not likely to materially affect the primary short-term catalyst: sustained organic growth in utility grid modernization, though it does reinforce the biggest near-term risk, margin pressure from cost inflation and tariff impacts. Among recent announcements, the company's continued focus on acquisitions stands out, as it has repeatedly signaled intent to broaden its product and market reach. This ongoing acquisition strategy is especially relevant given current catalysts, since expansion could help offset any softness in single segments and supports Hubbell’s position amid shifting industry needs. On the other hand, it is important to recognize that even as organic growth continues, the risk from rising input costs and potential execution missteps on pricing actions remains something investors should be aware of...

Read the full narrative on Hubbell (it's free!)

Hubbell's outlook anticipates $6.8 billion in revenue and $1.1 billion in earnings by 2028. This scenario implies a 6.3% annual revenue growth and a $270.9 million increase in earnings from the current $829.1 million.

Uncover how Hubbell's forecasts yield a $481.27 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range from US$200 to US$481, covering a wide span of investor expectations. While many see opportunity in Hubbell’s grid infrastructure growth, the reality of recent margin pressures reminds you to compare multiple perspectives before making up your mind.

Explore 3 other fair value estimates on Hubbell - why the stock might be worth as much as 12% more than 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 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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