Hubbell Reports Higher Sales for Q4

Hubbell, a leading maker of electrical and electronic equipment based in Shelton, Conn., has announced higher sales for the fourth quarter of the year. The company experienced strong performance in the data centers and industrial markets, which offset the softness seen in the utility-distributions and telecoms sectors.

Strong Financial Results

Hubbell reported a profit of $171 million, or $3.16 per share, in Q4, compared to $122.9 million, or $2.27 per share, in the same period the previous year. After adjusting for one-time items, the company's earnings per share were $3.69, surpassing the $3.58 estimate provided by analysts surveyed by FactSet.

Exceeding Expectations

In addition to strong earnings, Hubbell also exceeded analysts' expectations in terms of sales. The company's sales rose by 10% to reach $1.35 billion in Q4, surpassing the expected $1.32 billion.

Market Performance

CEO Gerben Bakker highlighted that while the utility-distributions markets were impacted by inventory normalization and the telecommunications markets were weak, Hubbell experienced growth in various other sectors. The company's industrial end markets, data centers, and electrical-solutions business all contributed to its overall performance.

Future Outlook

Looking ahead to 2024, Hubbell has set ambitious targets for sales growth. The company aims to achieve an 8% to 10% increase in sales, with acquisitions expected to generate approximately 5% of this growth. In terms of adjusted earnings per share, Hubbell is targeting a range of $16 to $16.50. While analysts surveyed by FactSet anticipated earnings of $16.41 per share, Hubbell remains confident in their projections.