What Happened?
Shares of electrical and electronic products company Hubbell (NYSE: HUBB) jumped 4.6% in the afternoon session after the stock's positive momentum continued as the company reported strong third-quarter results that beat profit expectations and raised its full-year earnings guidance.
The electrical and electronic products company posted adjusted quarterly earnings of $5.17 per share, surpassing analysts' forecasts. While quarterly sales rose 4.1% year-on-year to $1.50 billion, the figure was slightly below what Wall Street had anticipated. Investors appeared to focus on the positive aspects of the report, as Hubbell lifted its full-year 2025 adjusted earnings outlook to a range of $18.10 to $18.30 per share. Adding to the good news, the company announced a higher dividend. This solid performance was attributed to ongoing demand for grid modernization and electrification. In response to the strong quarter and improved forecast, several analysts raised their price targets for the stock.
After the initial pop the shares cooled down to $474.19, up 4.1% from previous close.
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What Is The Market Telling Us
Hubbell’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock gained 3.9% on the news that the company reported third-quarter results that beat profit expectations and raised its full-year forecast, helping investors look past a slight miss on revenue. Hubbell's adjusted earnings per share came in at $5.17, which was higher than analysts had expected. However, its total revenue of $1.5 billion for the quarter was slightly below consensus estimates. Initially, the stock traded lower following the announcement. Despite the revenue shortfall, the company increased its adjusted earnings per share guidance for the full year to $18.20 at the midpoint. The positive earnings and improved forecast appeared to win over investors, reversing the initial dip.
Hubbell is up 12.9% since the beginning of the year, and at $474.19 per share, has set a new 52-week high. Investors who bought $1,000 worth of Hubbell’s shares 5 years ago would now be looking at an investment worth $3,278.
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