SHELTON, CT - Hubbell Incorporated (NYSE: HUBB) reported second-quarter earnings that surpassed analyst expectations, with adjusted earnings per share (EPS) of $4.37, $0.13 higher than the $4.24 consensus.
However, revenue for the quarter fell slightly short of expectations at $1.45 billion, compared to the anticipated $1.48 billion. HUBB shares were trading flat following the announcement.
The company has raised its full-year adjusted EPS guidance to a range of $16.20 to $16.50, with the midpoint of $16.35 exceeding the analyst consensus of $16.32.
Hubbell anticipates a total sales growth of 7-8% for the full year 2024, with organic net sales expected to grow by approximately 3% compared to the previous year. Acquisitions, net of the residential lighting business divestiture, are projected to contribute about 5% to the full-year sales growth.
Hubbell's Chairman, President, and CEO, Gerben Bakker, commented on the quarter's performance, highlighting the company's strong organic growth and margin expansion in the Electrical Solutions segment. He noted that robust project activity in data centers and renewables, coupled with operational execution on segment unification and simplification efforts, contributed to the significant operating margin expansion. Bakker expressed confidence in the company's positioning to continue delivering differentiated, sustainable outperformance.
The company's Utility Solutions segment saw a 12% increase in net sales to $927 million compared to the same quarter last year, with acquisitions adding 13%. The Electrical Solutions segment experienced a decrease in net sales to $526 million, down from $535 million in the previous year, although organic net sales increased by 7%. Adjusted operating income for the Utility Solutions and Electrical Solutions segments was $222 million (24.0% of net sales) and $109 million (20.8% of net sales), respectively.
The company continues to expect full-year 2024 free cash flow of approximately $800 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.