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Shareholders might have noticed that Hubbell Incorporated (NYSE:HUBB) filed its quarterly result this time last week. The early response was not positive, with shares down 4.2% to US$426 in the past week. Revenues came in 2.7% below expectations, at US$1.4b. Statutory earnings per share were relatively better off, with a per-share profit of US$4.05 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Hubbell
Taking into account the latest results, the consensus forecast from Hubbell's twelve analysts is for revenues of US$6.01b in 2025. This reflects a reasonable 6.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 15% to US$16.05. In the lead-up to this report, the analysts had been modelling revenues of US$6.07b and earnings per share (EPS) of US$15.98 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$459, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Hubbell at US$500 per share, while the most bearish prices it at US$402. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Hubbell's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hubbell is also expected to grow slower than other industry participants.