Hubbell (HUBB) Is Up 5.7% After Raising 2025 EPS Guidance On Mixed Q3 Results Has The Bull Case Changed?

• In late October, Hubbell Incorporated reported mixed third-quarter results, with net sales rising but missing estimates, while adjusted EPS increased 12.1% and beat analyst expectations, prompting management to raise its fiscal 2025 adjusted EPS guidance.
• This combination of stronger-than-expected profitability and a higher earnings outlook, despite softer sales versus forecasts, has sharpened investor focus on Hubbell’s ability to convert grid modernization and electrification demand into sustained earnings growth.
• We’ll now examine how Hubbell’s upgraded 2025 earnings guidance reshapes the earlier investment narrative around growth, margins and risks.

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Hubbell Investment Narrative Recap

To own Hubbell, you need to believe that grid modernization and electrification can keep driving earnings even when quarterly sales are a bit uneven. The latest Q3 release, with softer revenue but upgraded 2025 EPS guidance, reinforces earnings resilience in the near term, but also keeps the spotlight on whether pricing and productivity can continue to offset cost inflation and tariff pressures.

Among recent announcements, the October 30 issue of US$400 million of 4.80% senior notes due 2035, used to redeem existing 3.350% notes maturing in 2026, stands out. While it does not change the core demand story, it matters for the earnings catalyst because interest costs and balance sheet flexibility can influence how effectively Hubbell funds growth in utility and electrical infrastructure.

However, against this stronger earnings outlook, investors should still pay close attention to the risk that ongoing cost inflation and tariffs could squeeze margins if...

Read the full narrative on Hubbell (it's free!)

Hubbell's narrative projects $6.8 billion revenue and $1.1 billion earnings by 2028. This requires 6.3% yearly revenue growth and about a $270.9 million earnings increase from $829.1 million today.

Uncover how Hubbell's forecasts yield a $478.67 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span a wide range between US$200 and about US$478. Some community members focus on Hubbell’s ability to turn grid modernization trends into sustained earnings, which could be tested if inflation and tariff pressures remain hard to fully offset.

Explore 3 other fair value estimates on Hubbell - why the stock might be worth as much as $478.67!

Build Your Own Hubbell Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hubbell research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Hubbell research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hubbell's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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