Why Electrical Solutions Provider Hubbell Shares Are Up Today
Portfolio Pulse from Lekha Gupta
Hubbell Inc (NYSE:HUBB) shares rose after reporting Q4 FY23 results with net sales of $1.35 billion, surpassing the $1.32 billion consensus. Utility Solutions and Electrical Solutions segments saw Y/Y growth. Gross profit and adjusted operating margin increased, with adjusted EPS of $3.69 beating the $3.57 consensus. Hubbell acquired Systems Control for $1.1 billion and agreed to sell its Residential Lighting business for $131 million. FY24 outlook anticipates adjusted EPS of $16.00-$16.50 and sales growth of 8%-10% Y/Y.
January 30, 2024 | 5:57 pm
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Hubbell Inc reported strong Q4 FY23 results with higher net sales and EPS than expected, completed a significant acquisition, and provided a positive FY24 outlook.
The positive earnings report, with net sales and EPS exceeding consensus, indicates strong company performance and efficiency, which typically leads to an increase in stock price. The acquisition of Systems Control and the sale of the Residential Lighting business show strategic moves to focus on core operations, which can be viewed favorably by investors. The optimistic outlook for FY24 with expected sales growth aligns with investor interests in company growth potential.
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