HUBB

Hubbell stock has delivered a strong 5 year run, yet the current share price now sits above the latest Discounted Cash Flow (DCF) intrinsic value estimate while earnings based multiples look closer to fair. Hubbell has returned about 149.4% over 5 years, which puts more pressure on today’s buyers to judge whether that past gain already reflects much of the long term opportunity. Expectations for steady cash generation from electrical and power infrastructure work can support the current valuation. However, any setback in project demand or pricing power may weigh on future cash flow assumptions. The broader valuation checks give a mixed picture rather than a clear bargain or clear overvaluation, with a value score of 4 out of 6. The issue now is whether Hubbell stock at around US$470 already prices in its cash flow outlook, or still leaves enough room for a reasonable margin of safety. Compare Hubbell’s run and current valuation with a curated list of other electrical and infrastructure focused stocks in the 38 power grid technology and infrastructure stocks to see where the next move could come from. The Discounted Cash Flow (DCF) model focuses on the cash that Hubbell can generate for shareholders over time. For Hubbell, the latest twelve month free cash flow is about $886 million, and the model assumes these cash flows continue growing from this base. On that basis, the 2 Stage Free Cash Flow to Equity model arrives at an estimated intrinsic value of about $380 per share. With the stock around $470, this DCF output indicates that Hubbell is trading roughly 23.6% above that intrinsic value estimate. The cash flow profile appears relatively mature rather than dependent on sharp future jumps, which makes the gap between price and DCF value important for anyone seeking a margin of safety. The DCF analysis indicates that Hubbell stock currently screens as overvalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Hubbell may be overvalued by 23.6%. Discover 46 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Hubbell. The P/E ratio suits Hubbell because earnings quality is central to how many investors look at industrial stocks. Hubbell currently trades on a P/E of about 27.6x, compared with an Electrical industry average near 35.0x and a peer group average around 40.8x. On simple comparisons, that means the stock changes hands at a lower earnings multiple than many sector peers. A more tailored check suggests that, given Hubbell’s profile, a P/E closer to 28.0x would be in line with what the market might usually pay. The current multiple is only slightly below that fair ratio. That points to a price that broadly reflects the earnings outlook that analysts are using, rather than a clear discount or a stretched premium. On the P/E measure, Hubbell stock looks roughly fairly valued compared with both its own fair ratio and the wider Electrical industry. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation checks for Hubbell leave off and spell out the future paths that would justify a meaningfully higher or lower share price. Each narrative ties its number to a clear view on how Hubbell's growth, margins and risks could evolve. You can track these over time as fresh quarterly results, orders and project data appear on the Community page. One of the top community narratives on Hubbell: 17% undervalued Read one of the top narratives on Hubbell Do you think there's more to the story for Hubbell? Head over to our Community to see what others are saying! For Hubbell, the Discounted Cash Flow (DCF) view points to an intrinsic value that is below the current share price, which implies the stock screens as overvalued on cash generation alone. The earnings-based view looks closer to about right, with the P/E multiple broadly in line with what similar companies receive. That split reflects a tension between cash flow assumptions and what the market is willing to pay for Hubbell’s earnings stream. The key question from here is whether future cash flows and project demand ultimately justify paying a premium to the intrinsic value estimate. 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. Companies discussed in this article include HUBB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Net Sales: $1.712 billion in Q2 2026, up 15% year-over-year. Organic Growth: 10% in Q2, driven by 6% growth in Utility Solutions and 18% growth in Electrical Solutions. Adjusted Operating Profit: $409 million in Q2, up 13% year-over-year. Adjusted Operating Margin: 23.9% in Q2, a modest contraction versus the prior year. Adjusted EPS: $5.52 in Q2, up 12% year-over-year. Free Cash Flow: $213 million in Q2, down year-over-year; first half free cash flow of $259 million was up 12%. Utility Solutions Net Sales: $1.026 billion in Q2, up 10% year-over-year (6% organic, 4% from acquisitions). Utility Solutions Adjusted Operating Profit: $263 million in Q2, up 10% year-over-year. Electrical Solutions Net Sales: $686 million in Q2, up 25% year-over-year (18% organic). Electrical Solutions Adjusted Operating Profit: $146 million in Q2, up 18% year-over-year. Electrical Solutions Adjusted Operating Margin: 21.2% in Q2, down 130 basis points year-over-year. Data Center Sales: Up approximately 65% in Q2. NSI Acquisition Contribution: $35 million in sales for the partial month of June; expected to add approximately $0.20 adjusted EPS accretion in 2026 and $0.80 in 2027. Full Year 2026 Sales Growth Outlook: Raised to plus 16% to 18% (from plus 8% to 11%). Full Year 2026 Organic Growth Outlook: Raised to plus 9% to 11% (from plus 6% to 9%). Full Year 2026 Adjusted Operating Margin Outlook: 23.1% to 23.4%, representing 40 to 70 basis points of year-over-year expansion. Full Year 2026 Adjusted EPS Outlook: Raised to $20.25 to $20.55, representing 11% to 13% growth year-over-year. Full Year 2026 Free Cash Flow Conversion: Approximately 90% of adjusted net income. Warning! GuruFocus has detected 3 Warning Signs with BOM:532884. Is HUBB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hubbell Inc (NYSE:HUBB) delivered strong double-digit growth in sales, adjusted operating profit, and adjusted EPS in Q2 2026, with organic sales up 10%. The company raised its full-year 2026 guidance, now expecting organic sales growth of 9% to 11% and adjusted EPS of $20.25 to $20.55, reflecting increased confidence in the second half. Strong order momentum, with a book-to-bill ratio of 1.2x in Utility Solutions, provides high visibility into second-half performance and supports a multiyear investment cycle in T&D markets. The acquisition of NSI is expected to be accretive, adding approximately $0.20 to adjusted EPS in 2026 and $0.80 in 2027, with targeted sales and cost synergies of 2-3% and 3-5%, respectively. Data center sales surged approximately 65% in the quarter, driven by capacity additions, new product introductions, and content gains, positioning Hubbell Inc (NYSE:HUBB) to capitalize on a high-growth market. The company is effectively managing inflation through pricing actions and productivity improvements, with additional price increases implemented in July to offset cost pressures. Grid Automation returned to year-over-year growth in Q2, with strong orders in meters and AMI, signaling a recovery in that segment. Hubbell Inc (NYSE:HUBB) is investing in capacity expansion, with CapEx expected to be $175-190 million in 2026, to support long-term growth in high-demand areas. The company expects adjusted operating margin expansion of 40-70 basis points for the full year, driven by volume growth and acquisition contributions. Free cash flow conversion is on track to be approximately 90% of adjusted net income, with a plan to deleverage the balance sheet over the next 24-30 months. Adjusted operating margins contracted modestly in Q2, down 130 basis points in Electrical Solutions due to higher cost inflation and increased restructuring investments. Cost inflation remains a headwind, with rising prices for copper, aluminum, and steel, requiring ongoing pricing and productivity actions to mitigate. The NSI acquisition increased net debt to approximately 2.9x EBITDA, leading to higher interest expense that partially offsets earnings growth. Free cash flow in Q2 was down year-over-year due to working capital timing and acquisition costs, though first-half cash flow improved. The company faces a difficult comparison in Q4 for Grid Infrastructure, which could temper growth rates despite strong momentum. Increased restructuring investments, particularly in Electrical Solutions, are expected to continue in the second half, weighing on margins. The full-year outlook includes a one-time benefit of $20 million from IEPA refunds, which is concentrated in Q3 and may not be repeatable. Tariff-related costs, including changes to Section 301, are expected to slightly increase, adding to cost pressures. The company anticipates a higher tax rate of approximately 24% in Q3 due to timing of discrete items, which could impact quarterly earnings. Capacity expansion investments are expected to keep free cash flow conversion at around 90% for the next couple of years, below historical levels of 100%. Q: Can you provide more color on the strength in distribution and the timing of Transmission & Substation growth, given the strong order rates?A: Gerben Bakker (CEO) noted that strong order rates (book-to-bill of 1.2x) were broad-based across grid infrastructure and grid automation. Distribution grew double digits, while Transmission & Substation is expected to accelerate to double-digit growth in the second half, supported by strong quoting activity and backlog visibility. He attributed the strength to the multiyear investment cycle driven by data center load growth and utility CapEx, with no significant supply chain concerns. Q: Are you starting to build visibility into 2027 orders, and how are customer conversations trending?A: Gerben Bakker (CEO) confirmed that orders are starting to be booked into 2027, particularly in Transmission & Substation, as utilities plan further out for load growth and capacity. The quoting pipeline has doubled over the last couple of years, driven by higher voltage projects, and the company feels confident in sustaining growth above its organic target due to the multiyear nature of the investment cycle. Q: Can you elaborate on the price increase realization and expectations for further pricing actions?A: Joseph Capozzoli (CFO) explained that Hubbell pushed through a price increase in April, expecting about 1 point of price, raising full-year expectations to ~3 points. Due to additional inflation, they implemented another price increase in July, expecting an additional 0.5 point in the back half. This brings full-year price expectations to roughly 3 to 4 points, with continued confidence in managing the price/cost equation. Q: What is the breakdown of the full-year operating margin expansion, and how does the tariff refund impact the quarters?A: Joseph Capozzoli (CFO) broke down the ~40 bps increase in full-year operating margin guidance: ~30 bps from net tariff benefits (IEPA refunds) and ~40 bps from NSI accretion, partially offset by increased investments in capacity and restructuring. The tariff refund of ~$20 million is concentrated in Q3, split roughly half and half between Electrical and Utility segments. Electrical Solutions is expected to return to margin expansion in both Q3 and Q4. Q: How should we think about the capacity expansion investments and the revenue unlock from these initiatives?A: Joseph Capozzoli (CFO) stated that CapEx is expected to be $175 million to $190 million in 2026, up from $155 million last year, largely focused on adding capacity in high-growth areas. The company is bringing on roughly $25 million of new capacity per quarter, which will continue to absorb new revenues as it comes online through the back half of 2026 and into 2027. Q: How does your win rate on larger projects compare to the corporate average, and how does the modular approach help?A: Gerben Bakker (CEO) noted that the win rate on larger projects is similar to historical levels, but the volume of project quotes has roughly doubled in the last couple of years, driven by higher voltage projects. The modular approach (e.g., factory-built substations, power skids) is a growing trend due to labor availability and quality control, and Hubbell's broad portfolio positions it well to bundle solutions and capture this demand. Q: What is driving the recent strength in distribution, and what are your assumptions for the second half?A: Gerben Bakker (CEO) attributed the double-digit growth in distribution to strong underlying markets and easier year-over-year comparisons from the destocking cycle. The long-term driver remains the aging infrastructure and need for hardening and resiliency, supported by utility CapEx budgets. He expects distribution to remain a mid-single-digit-plus growth market over the longer term, with continued strength into the second half and 2027. Q: Can you provide an update on the trends in meters and AMI (Grid Automation), and the recovery in the Aclara business?A: Gerben Bakker (CEO) confirmed that Grid Automation returned to year-over-year growth in Q2 as anticipated, with book-to-bill above 1. The improvement is driven by better project flow in the muni and co-op space, where the company refocused investments last year. Small and medium projects, along with some international opportunities, are setting up the Aclara business for growth in the second half of 2026. Q: On the accelerated data center growth, is the content gain a change in allocations or an expansion of design wins?A: Joseph Capozzoli (CFO) described it as "more of the same," with the key driver being the ability to supply inventory at the right time and place for short-cycle data center support. Gerben Bakker (CEO) added that new product development, such as higher amperage Pin & Sleeve devices for 800-volt infrastructure, is also contributing to content gains as data centers evolve to higher capacities. Q: Can you provide an update on the high-voltage transmission opportunity and the $1.5 billion, 10-year pipeline?A: Gerben Bakker (CEO) confirmed that the first 765 kV project will start shipping in 2027, while 550 kV projects are shipping in the second half of 2026. The quoting pipeline is strong, with about twice the volume of a couple of years ago, driven by higher kV projects. Hubbell's leading installed base and testing capabilities position it well, and the $1.5 billion opportunity translates to roughly 1 point of additional growth over the next several years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Hubbell Inc? Here are five stocks we like better. Strong Q2 performance: Sales rose 15% to $1.712 billion, while adjusted EPS increased 12% to $5.52, driven by demand from utility transmission and distribution markets and data centers. NSI acquisition expands growth opportunities: The $3 billion acquisition added $35 million in June sales and is expected to contribute $0.20 to 2026 adjusted EPS and $0.80 in 2027, with targeted sales and cost synergies. 2026 outlook raised: Hubbell now expects sales growth of 16% to 18%, adjusted EPS of $20.25 to $20.55, and approximately 50% growth in data-center sales, while planning to reduce acquisition-related debt over the next 24 to 30 months. 3 Sustainable Stocks Benefiting From the AI Energy Surge Hubbell (NYSE:HUBB) reported second-quarter 2026 results marked by double-digit sales, adjusted operating profit and adjusted earnings-per-share growth, citing demand in utility transmission and distribution markets as well as data centers. The company also raised its full-year outlook following the early-June close of its acquisition of NSI. Second-quarter net sales rose 15% from a year earlier to $1.712 billion, including 10% organic growth and a 5-percentage-point contribution from acquisitions. Adjusted operating profit increased 13% to $409 million, while adjusted operating margin was 23.9%, modestly below the prior-year period. Adjusted diluted earnings per share increased 12% to $5.52. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Hubbell, Rockwell stocks set to benefit from electrification boom Chairman, President and CEO Gerben Bakker said the company is seeing continued strength in its order book as investment accelerates in data centers and utility transmission and distribution, or T&D, infrastructure. “Mega trends continue to accelerate, most notably in data center markets and load growth-related investment in utility T&D markets,” Bakker said. Hubbell closed its previously announced acquisition of NSI in early June. Bakker said the acquired company adds electrical fittings through the Bridgeport Fittings brand, grounding and connector products through Polaris, and network-infrastructure exposure that can support Hubbell’s datacom, broadband and data-center businesses. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 2 little known AI stocks are up more than 200% this year CFO Joe Capozzoli said the $3 billion purchase was financed through a combination of a term loan, bond offering and commercial paper. The transaction increased Hubbell’s pro forma net debt-to-EBITDA leverage to about 2.9 times. NSI is expected to add about $0.20 to adjusted earnings per share in 2026 and about $0.80 in 2027, Capozzoli said. The company is targeting sales synergies of 2% to 3% over the next three years through channel and vertical-market penetration, along with cost synergies of about 3% to 5% from combined operations, supply chains, IT systems and back-office capabilities. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Hubbell plans to invest in capacity and productivity while continuing dividend growth and modest share repurchases. It also intends to pay down a significant portion of acquisition-related debt over the next 24 to 30 months, according to Capozzoli. Utility Solutions generated second-quarter sales of $1.026 billion, up 10% year over year, including 6% organic growth and 4% growth from acquisitions. Adjusted operating profit rose 10% to $263 million, with margins slightly higher than the prior-year period. The company’s grid infrastructure business grew 7% organically, led by double-digit growth in distribution markets. Transmission and substation sales also increased, and management expects double-digit growth in those markets for the full year as larger projects ramp in the second half and capacity investments come online. Utility Solutions recorded a first-half book-to-bill ratio of about 1.2 times. Bakker said orders were broad-based across T&D markets, with particular strength in transmission and substation projects tied to load growth and data-center development. He added that some transmission and substation orders are now being booked into 2027. Management said its first 765-kilovolt project is expected to begin shipping in 2027, while 550-kilovolt projects are expected to ship during the second half of 2026. Bakker said project quoting in transmission and substation has approximately doubled over the past couple of years. Grid automation returned to year-over-year growth during the quarter, aided by protection and controls products. Revenue from meters and advanced metering infrastructure grew sequentially, while orders supported expectations for further recovery in the second half and into 2027. Electrical Solutions posted $686 million in second-quarter sales, up 25% from a year earlier. Organic sales grew 18%, supported by data-center, light-industrial and non-residential markets. Data-center sales increased about 65% during the quarter, driven by added capacity, product introductions and content gains, management said. NSI contributed $35 million in sales during its partial month of ownership in June, representing roughly 7 percentage points of segment growth. Hubbell said early order activity and customer response have been favorable. Electrical Solutions adjusted operating profit increased 18% to $146 million. Its adjusted operating margin declined 130 basis points to 21.2%, as higher inflation and restructuring-related investments offset volume growth, pricing, productivity and NSI’s profit contribution. Capozzoli said the company expects Electrical Solutions margins to return to year-over-year expansion in both the third and fourth quarters. Hubbell said it implemented broad pricing actions in April and additional price increases in July. Capozzoli said the company now expects roughly 3 to 4 percentage points of price realization for the full year, compared with an initial expectation of 2 points, as it responds to higher inflation. Hubbell raised its full-year sales growth outlook to 16% to 18%, from 8% to 11%. The updated forecast includes expected organic growth of 9% to 11%, up from a prior range of 6% to 9%, plus an additional five percentage points of acquisition contribution from NSI. Utility Solutions organic growth is projected at 7% to 9%. Electrical Solutions organic growth is projected at 12% to 14%. Full-year data-center sales are expected to grow approximately 50%. Adjusted operating margin is projected at 23.1% to 23.4%, representing 40 to 70 basis points of year-over-year expansion. Adjusted diluted EPS is projected at $20.25 to $20.55, up from prior guidance of $19.30 to $19.85. The outlook includes expected net interest expense of $170 million related to the NSI financing and a full-year adjusted tax rate of 22% to 22.5%. Hubbell expects third-quarter tax rates of about 24% due to the timing of discrete items. The company expects approximately 90% free-cash-flow conversion of adjusted net income in 2026. Second-quarter free cash flow was $213 million, while first-half free cash flow totaled $259 million, up 12% year over year. Management said elevated capital expenditures, acquisition costs and working-capital needs are expected to keep conversion near 90% over the next several years as it expands capacity. Hubbell Incorporated (NYSE: HUBB) is an industrial manufacturer and distributor of electrical and electronic products serving a range of end markets including commercial and residential construction, industrial, and utility customers. Founded in 1888 by Harvey Hubbell, the company has a long history in electrical innovation and product development and is headquartered in Connecticut. Hubbell designs, manufactures and sells components and systems that enable the distribution and control of electrical power and provide lighting solutions for indoor and outdoor environments. The company's offerings span a broad portfolio of products used by contractors, utilities, original equipment manufacturers and facility owners. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hubbell Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Shelton, CT, July 28, 2026 (GLOBE NEWSWIRE) -- HUBBELL REPORTS SECOND QUARTER 2026 RESULTS Q2 diluted EPS of $4.52; adjusted diluted EPS of $5.52 (up 12% y/y) Q2 net sales +15% (organic +10%; M&A +5%) Q2 operating margin 20.4%; adjusted operating margin 23.9% (down 50 bps y/y) FY 2026 diluted EPS expected range of $17.25-$17.55; raising adj. diluted EPS to $20.25-$20.55 SHELTON, CT. (July 28, 2026) – Hubbell Incorporated (NYSE: HUBB) today reported operating results for the second quarter ended June 30, 2026. "Hubbell delivered strong performance in the second quarter, with double digit growth in sales, adjusted operating profit and adjusted earnings per share" said Gerben Bakker, Chairman, President and CEO. Mr. Bakker continued, "Our strong positions in attractive end markets, as well as continued execution on our strategy, are demonstrated by our strong second quarter and first half financial results. Megatrends in grid modernization, load growth and datacenter investment drove 10% organic growth in the second quarter, with visible demand strength across utility and electrical markets. Operationally, we are managing inflation effectively through price and productivity actions while investing in capacity expansion to serve our customers in high growth areas and deploying capital to further upgrade our portfolio in high growth and margin areas within our core." Mr. Bakker concluded, "Strong first half order trends provide visibility to our second half outlook, and we are increasing our full year outlook to reflect double digit growth in organic sales, adjusted operating profit and adjusted earnings per share at the midpoint of our range." Certain terms used in this release, including “net debt”, “free cash flow”, “organic net sales”, “organic net sales growth”, “restructuring-related costs”, “Adjusted EBITDA”, and certain other “adjusted” measures, are defined under the section entitled “Non-GAAP Definitions.” See page 11 for more information. SECOND QUARTER FINANCIAL HIGHLIGHTS The comments and year-over-year comparisons in this segment review are based on second quarter results in 2026 and 2025. Utility Solutions segment net sales in the second quarter of 2026 increased 10% to $1,026 million compared to $936 million reported in the second quarter of 2025. Organic net sales increased approximately 6% in the quarter compared to the second quarter 2025. Grid Infrastructure net sales increased approximately 12% and Grid Automation net sales increased approximately 1%. Segment operating income in the second quarter of 2026 was $234 million, or 22.8% of net sales, compared to $218 million, or 23.3% of net sales, in the same period of 2025. Adjusted operating income was $263 million, or 25.6% of net sales, in the second quarter of 2026 as compared to $239 million, or 25.5% of net sales, in the same period of the prior year. Changes in operating income and operating margin were primarily due to volume growth, the impact of acquisitions and favorable price and productivity, partially offset by higher cost inflation, raw material costs and tariffs. Electrical Solutions segment net sales in the second quarter of 2026 increased 25% to $686 million compared to $549 million reported in the second quarter of 2025. Organic net sales increased 18% in the quarter, while acquisitions added 6.5%. Segment operating income in the second quarter of 2026 was $115 million, or 16.7% of net sales, compared to $118 million, or 21.5% of net sales, in the same period of 2025. Adjusted operating income was $146 million, or 21.2% of net sales, in the second quarter of 2026 as compared to $124 million, or 22.5% of net sales, in the same period of the prior year. Changes in operating income and operating margin were driven primarily by volume growth, the impact of acquisitions and favorable price realization and productivity, partially offset by higher cost inflation, raw material costs, tariffs and restructuring investment. Adjusted diluted EPS in the second quarter 2026 excluded $0.56 of amortization of acquisition-related intangible assets and $0.44 of transaction, integration, and separation costs. Adjusted diluted EPS in the second quarter 2025 excluded $0.36 of amortization of acquisition-related intangible assets and $0.01 of transaction, integration, & separation costs.During the second quarter, the Company acquired all of the issued and outstanding equity of NSI Electrical Buyer, Inc. ("NSI Industries"), a leading provider of electrical fittings, connectors, components and wire management products, for approximately $3.0 billion, using net proceeds from borrowings under a new unsecured term loan facility in an aggregate principal amount of $900 million, the issuance of $1.9 billion aggregate principal amount of senior notes and issuances of commercial paper. Net cash provided by operating activities was $250 million in the second quarter of 2026 versus net cash provided by operating activities of $261 million in the 2025 period. Free cash flow was $213 million in the second quarter of 2026 versus $221 million in the comparable period of 2025. SUMMARY & OUTLOOK For the full year 2026, Hubbell anticipates total sales growth of 16-18% including organic sales growth of 9-11%. Hubbell expects 2026 GAAP diluted earnings per share in the range of $17.25 to $17.55 and adjusted diluted earnings per share (“Adjusted EPS”) in the range of $20.25 to $20.55. For the full year, Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $2.50 per share, and transaction, integration, and separation costs, which the Company expects to be approximately $0.50 per share. The Company believes Adjusted EPS is a useful measure of underlying performance in light of our acquisition strategy. The diluted earnings per share and Adjusted EPS ranges are based on an adjusted tax rate of 22.0% to 22.5% and include approximately $20 million of anticipated restructuring and related investment. The Company expects full year 2026 free cash flow conversion of approximately 90% on adjusted net income. CONFERENCE CALL Hubbell will conduct an earnings conference call to discuss its second quarter 2026 financial results today, July 28, 2026 at 10:00 a.m. ET. A live audio of the conference call will be available and can be accessed by visiting Hubbell's "Investor Relations - Events/Presentations" section of www.hubbell.com. Audio replays will also be available at the conclusion of the call by visiting www.hubbell.com and selecting "Investors" from the options at the bottom of the page and then "Events/Presentations" from the drop-down menu. FORWARD-LOOKING STATEMENTS Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements generally relate to our expectations and beliefs regarding our financial results, condition and outlook, projections of future performance, anticipated growth and end markets, changes in operating results, market conditions and economic conditions, expected capital resources, liquidity, financial performance, pension funding and results of operations, plans, strategies, opportunities, developments and productivity initiatives, competitive positioning, and trends in particular markets or industries. In addition, statements related to our outlook for 2026 and beyond, and all statements set forth in the “Summary & Outlook” section above, as well as other statements that are not strictly historic in nature, are forward-looking. These statements may be identified by the use of forward-looking words or phrases such as “believe”, “expect”, “anticipate”, “intend”, “depend”, “plan”, “estimated”, “predict”, “target”, “should”, “could”, “may”, “subject to”, “continues”, “growing”, “prospective”, “forecast”, “projected”, “purport”, “might”, “if”, “contemplate”, “potential”, “pending”, “goals”, “scheduled”, “will”, “will likely be”, and similar words and phrases. Such forward-looking statements are based on our current expectations and involve numerous assumptions, known and unknown risks, uncertainties and other factors which may cause actual and future performance or the Company’s achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the impact of and substantial uncertainty regarding the duration of existing and newly announced trade tariffs, import quotas or other trade actions, restrictions or measures taken by the United States, China, Mexico, the United Kingdom, member states of the European Union, and other countries, including the recent and ongoing potential changes in U.S. trade policies, that may be made by the current or a future presidential administration and changes in trade policies in other countries made in response to changes in the U.S. trade policies; the timing of and eligibility for anticipated International Emergency Economic Power Act (IEEPA) tariff refunds; the general impact of inflation on our business, including the impact on raw materials costs, elevated interest rates and increased energy costs and our ability to implement and maintain pricing actions that we have taken to cover higher costs and protect our margin profile; economic and business conditions in particular industries, markets or geographic regions, as well the potential for macro-economic effects of the U.S. government federal deficit, and continued inflation, a significant economic slowdown, stagflation or recession; effects of unfavorable foreign currency exchange rates and the potential use of hedging instruments to hedge the exposure to fluctuating rates of foreign currency exchange on inventory purchases; supply chain disruptions and availability, costs and quantity of raw materials, purchased components, energy and freight; changes in demand for our products, market conditions, product quality, or product availability adversely affecting sales levels; ability to effectively develop and introduce new products; changes in markets or competition adversely affecting realization of price increases; continued softness in the heavy industrial and residential markets of Electrical Solutions; failure to achieve projected levels of efficiencies, and maintain cost savings and cost reduction measures, including those expected as a result of our lean initiatives and strategic sourcing plans; failure to comply with import and export laws; changes relating to impairment of our goodwill and other intangible assets; inability to access capital markets or failure to maintain our credit ratings; changes in expected or future levels of operating cash flow, indebtedness and capital spending; regulatory issues, and extensive worldwide changes to the taxation of multinational enterprises, including global minimum tax rules under the Organisation for Economic Co-operation and Development’s Pillar Two initiative and potential modifications to corporate taxation by the U.S. government, including adjustments to tax rates, deduction limitations, cross-border tax provisions, and administrative guidance; a major disruption in one or more of our manufacturing or distribution facilities or headquarters, including the impact of plant consolidations and relocations; changes in our relationships with, or the financial condition or performance of, key distributors and other customers, agents or business partners which could adversely affect our results of operations; impact of productivity improvements on lead times, quality and delivery of product; anticipated future contributions and assumptions including increases in interest rates and changes in plan assets with respect to pensions and other retirement benefits, as well as pension withdrawal liabilities; adjustments to product warranty accruals in response to claims incurred, historical experiences and known costs; unexpected costs or charges, certain of which might be outside of our control; changes in strategy due to economic conditions or other conditions outside of our control affecting anticipated future global product sourcing levels; ability to carry out future acquisitions and strategic investments in our core businesses as well as the acquisition related costs; the ability to successfully manage and integrate acquired businesses, such as the acquisitions of NSI Electrical Buyer, Inc. (the NSI Industries business), Alliance USAcqCo 2, Inc. (the Ventev business), Nicor, Inc. (the Nicor business), and Power Rose Acquisition, Inc. (the DMC Power business), as well as the failure to realize expected synergies and benefits anticipated when we make an acquisition due to potential adverse reactions or changes to business or employee relationships resulting from completion of the transaction, competitive responses to the transaction, the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of an acquired business, diversion of management’s attention from ongoing business operations and opportunities, and litigation relating to the transaction; the impact of certain divestitures, including the benefits and costs of the sale of the residential lighting business; the ability to effectively implement Enterprise Resource Planning systems without disrupting operational and financial processes; the ability of government customers to meet their financial obligations; political unrest and military actions in foreign countries, including the conflicts in Ukraine and the Middle East and trade tensions with China, as well as the impact on world markets and energy supplies and prices resulting therefrom, including the U.S.-Israel-Iran conflict, which has had substantial effects on global trade, the energy markets and the financial markets; the impact of potential natural disasters or additional public health emergencies on our financial condition and results of operations; failure of information technology systems, cybersecurity breaches, cyber threats, malware, phishing attacks, break-ins and similar events resulting in unauthorized disclosure of confidential information or disruptions or damage to information technology systems that could cause interruptions to our operations or adversely affect our internal control over financial reporting; incurring significant and/or unexpected costs to avoid, manage, defend and litigate intellectual property matters; future repurchases of common stock under our common stock repurchase program; changes in accounting principles, interpretations, or estimates; failure to comply with any laws and regulations, including those related to data privacy and information security, environmental laws and those relating to conflict-free minerals; the outcome of environmental, legal and tax contingencies or costs compared to amounts provided for such contingencies, including contingencies or costs with respect to pension withdrawal liabilities; improper conduct by any of our employees, agents or business partners that damages our reputation or subjects us to civil or criminal liability; our ability to hire, retain and develop qualified personnel; and other factors described in our Securities and Exchange Commission filings, including in the “Business”, “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Forward-Looking Statements” and “Quantitative and Qualitative Disclosures about Market Risk” sections in our Annual Report on Form 10-K for the year ended December 31, 2025, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Any such forward-looking statements are not guarantees of future performance and actual results, developments and business decisions may differ from those contemplated by such forward-looking statements. The Company disclaims any duty to update any forward-looking statement, all of which are expressly qualified by the foregoing, other than as required by law.About the Company Hubbell Incorporated is a leading manufacturer of utility and electrical solutions enabling customers to operate critical infrastructure safely, reliably and efficiently. With 2025 revenues of $5.8 billion, Hubbell solutions electrify economies and energize communities. The corporate headquarters is located in Shelton, CT. Contact: ####### NON-GAAP DEFINITIONS References to "adjusted" operating measures exclude the impact of certain costs, gains or losses. Management believes these adjusted operating measures provide useful information regarding our underlying performance from period to period and an understanding of our results of operations without regard to items we do not consider a component of our core operating performance. Adjusted operating measures are non-GAAP measures, and include adjusted operating income, adjusted operating margin, adjusted net income attributed to Hubbell Incorporated, adjusted net income available to common shareholders, adjusted earnings per diluted share, and Adjusted EBITDA. These non-GAAP measures exclude, where applicable: Amortization of all intangible assets associated with our business acquisitions, including inventory step-up amortization associated with those acquisitions. The intangible assets associated with our business acquisitions arise from the allocation of the purchase price using the acquisition method of accounting in accordance with Accounting Standards Codification 805, “Business Combinations.” These assets consist primarily of customer relationships, developed technology, trademarks and tradenames, and patents, as reported in Note 6—Goodwill and Other Intangible Assets, under the heading “Total Definite-Lived Intangibles,” within the Company’s audited Consolidated Financial Statements set forth in its Annual Report on Form 10-K for fiscal year ended December 31, 2025. The Company believes that the exclusion of these non-cash expenses because we believe it (i) enhances management’s and investors’ ability to analyze underlying business performance, (ii) facilitates comparisons of our financial results over multiple periods, and (iii) provides more relevant comparisons of our results with the results of other companies as the amortization expense associated with these assets may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. Although we exclude amortization of these acquired intangible assets and inventory step-up from our non-GAAP results, we believe that it is important for investors to understand that revenue generated, in part, from such intangibles is included within revenue in determining adjusted net income attributable to Hubbell Incorporated. Transaction, integration, and separation costs associated with our business acquisitions and divestitures. The effect that acquisitions and divestitures may have on our results can fluctuate significantly based on the timing, size, and number of transactions, and therefore result in significant volatility in the costs to complete transactions and integrate or separate the businesses. Transaction costs are primarily professional services and other fees incurred to complete the transactions recognized within operating income, as well as $7.2 million of bridge financing costs in connection with the transactions recognized within interest expense. Integration and separation costs are the internal and external incremental costs directly relating to these activities for the acquired or divested business. The acquisition and integration of NSI, DMC Power and the acquisitions and disposition completed by the Company in the fourth quarter of 2023 resulted in a significant increase in transaction, integration and separation costs. As a result, we believe excluding such costs relating to these transactions provides useful and more comparable information for investors to better assess our operating performance from period to period. Gains or losses on disposition of a business. The Company excludes these gains or losses because we believe they enhance management's and investors' ability to analyze underlying business performance and facilitates comparisons of our financial results over multiple periods. In the second quarter of 2025 the Company recognized a $0.4 million pre-tax loss on the disposition of a product line in the Electrical Solutions segment. Income tax effects of the above adjustments, which are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction, unless otherwise noted. Adjusted EBITDA is a non-GAAP measure that excludes the items noted above and also excludes the Other income (expense), net, Interest expense, net, and Provision for income taxes captions of the Condensed Consolidated Statement of Income, as well as depreciation and amortization expense. Net debt (defined as total debt less cash and investments) to total capital is a non-GAAP measure that we believe is a useful measure for evaluating the Company's financial leverage and the ability to meet its funding needs. Free cash flow is a non-GAAP measure that we believe provides useful information regarding the Company's ability to generate cash without reliance on external financing. In addition, management uses free cash flow to evaluate the resources available for investments in the business, strategic acquisitions and further strengthening the balance sheet. In connection with our restructuring and related actions, we have incurred restructuring costs as defined by U.S. GAAP, which are primarily severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. We also incur restructuring-related costs, which are costs associated with our business transformation initiatives, including the consolidation of back-office functions and streamlining our processes, and certain other costs and gains associated with restructuring actions. We refer to these costs on a combined basis as "restructuring and related costs", which is a non-GAAP measure. Organic net sales, a non-GAAP measure, represents Net sales according to U.S. GAAP, less Net sales from acquisitions and divestitures during the first twelve months of ownership or divestiture, respectively, less the effect of fluctuations in Net sales from foreign currency exchange. The period-over-period effect of fluctuations in Net sales from foreign currency exchange is calculated as the difference between local currency Net sales of the prior period translated at the current period exchange rate as compared to the same local currency Net sales translated at the prior period exchange rate. We believe this measure provides management and investors with a more complete understanding of the underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. When comparing Net sales growth between periods excluding the effects of acquisitions, business dispositions and currency exchange rates, those effects are different when comparing results for different periods. For example, because Net sales from acquisitions are considered inorganic from the date we complete an acquisition through the end of the first year following the acquisition, Net sales from such acquisitions are reflected as organic net sales thereafter. There are limitations to the use of non-GAAP measures. Non-GAAP measures do not present complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported GAAP financial results, and should be viewed in conjunction with the most comparable GAAP financial measures and the provided reconciliations thereto. We believe, however, that these non-GAAP financial measures, when viewed together with our GAAP results and related reconciliations, provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure. Reconciliations of each of these non-GAAP measures to the most directly comparable GAAP measure can be found in the tables below. When we provide our expectations for organic net sales, adjusted effective tax rate, adjusted diluted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected net sales, effective tax rate, diluted EPS and net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, certain financing costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. HUBBELL INCORPORATEDCondensed Consolidated Statement of Income(unaudited)(in millions, except per share amounts) HUBBELL INCORPORATEDCondensed Consolidated Balance Sheet(unaudited)(in millions) HUBBELL INCORPORATEDCondensed Consolidated Statement of Cash Flows(unaudited)(in millions) HUBBELL INCORPORATEDEarnings Per Share (unaudited)(in millions, except per share amounts) HUBBELL INCORPORATEDSegment Information(unaudited)(in millions) HUBBELL INCORPORATEDOrganic Net Sales Growth(unaudited)(in millions and percentage change) HUBBELL INCORPORATEDAdjusted EBITDA(unaudited)(in millions) HUBBELL INCORPORATEDRestructuring and Related Costs Included in Consolidated Results(unaudited)(in millions, except per share amounts) HUBBELL INCORPORATEDAdditional Non-GAAP Financial Measures(unaudited)(in millions) Ratios of Total Debt to Total Capital and Net Debt to Total Capital Free Cash Flow Reconciliation Free Cash Flow Reconciliation Flow Reconciliation

Hubbell (HUBB) came out with quarterly earnings of $5.52 per share, beating the Zacks Consensus Estimate of $5.31 per share. This compares to earnings of $4.93 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.96%. A quarter ago, it was expected that this electrical products manufacturer would post earnings of $3.87 per share when it actually produced earnings of $3.93, delivering a surprise of +1.55%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hubbell, which belongs to the Zacks Manufacturing - Electrical Utilities industry, posted revenues of $1.71 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.67%. This compares to year-ago revenues of $1.48 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hubbell shares have added about 12.1% since the beginning of the year versus the S&P 500's gain of 8.3%. While Hubbell has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hubbell was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.59 on $1.82 billion in revenues for the coming quarter and $19.98 on $6.78 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Electrical Utilities is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Industrial Products sector, Terex (TEX), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This machinery products maker is expected to post quarterly earnings of $1.25 per share in its upcoming report, which represents a year-over-year change of -16.1%. The consensus EPS estimate for the quarter has been revised 1.7% higher over the last 30 days to the current level. Terex's revenues are expected to be $2.14 billion, up 43.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hubbell Inc (HUBB) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by double-digit organic growth in Electrical Solutions, specifically a 65% surge in data center sales supported by capacity additions and new product introductions. Utility Solutions growth was fueled by distribution market strength and a 1.2x book-to-bill ratio, providing high visibility into a multi-year investment cycle for grid hardening and load growth. The acquisition of NSI is a strategic 'double down' on the core electrical portfolio, filling product gaps in high-value niches like electrical fittings and grounding connectors. Management is successfully offsetting persistent cost inflation through aggressive pricing actions and productivity initiatives, maintaining a positive price-cost-productivity equation. Operational execution is shifting toward a modular manufacturing approach to address customer labor shortages and improve quality control in factory settings. The company is pivoting its Grid Automation segment toward small and medium projects in the municipal and cooperative space, which returned the unit to growth this quarter. Full-year 2026 organic growth guidance was raised to 9-11%, reflecting stronger volumes in transmission, substation, and data center markets. Data center growth expectations for the full year were increased to approximately 50% based on strong vertical market strategy and sales force alignment. The company anticipates a $20 million net benefit in Q3 from IEPA tariff refunds, which is expected to front-load margin expansion in the second half of the year., which will contribute to margin expansion in the second half of the year. Capital allocation will prioritize debt paydown over the next 24-30 months to deleverage following the NSI acquisition, while maintaining elevated CapEx for capacity expansion. Management expects transmission and substation growth to accelerate to double digits in the second half of 2026 as large-scale projects ramp up. Pro forma leverage increased to 2.9x net debt to EBITDA following the $3 billion NSI acquisition, with a committed plan to deleverage via strong free cash flow. Free cash flow conversion is targeted at 90% for 2026, lower than historical 100% levels due to increased CapEx (2.5-3% of sales) and one-time acquisition costs. Restructuring investments of approximately $20 million are planned for 2026 to drive long-term efficiency, particularly within the Electrical Solutions segment transformation. A higher tax rate of approximately 24% is expected in Q3 2026 due to the timing of discrete items, before normalizing for the full year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that double-digit distribution growth reflects strong underlying markets and easier comparisons following previous destocking cycles. They view the current strength as sustainable due to the aging infrastructure and the fundamental need for grid resilience and hardening. Hubbell implemented price increases in April and July, targeting a total full-year price contribution of 3% to 4%. Management reported minimal pushback from the channel, as pricing actions are aligned with visible inflationary pressures and high demand. Orders are already being booked into 2027, particularly for transmission and substation projects which have longer lead times. The company is quoting roughly double the volume of high-voltage projects compared to two years ago, driven by data center interconnections and utility load growth. Content growth is being driven by 'short-cycle' support where having inventory on the shelf is a competitive advantage. New product development is focusing on higher-capacity data centers, including new pin and sleeve devices designed for 800-volt infrastructure.

Electrical and electronic products company Hubbell (NYSE:HUBB) will be announcing earnings results this Tuesday before market open. Here’s what to look for. Hubbell beat analysts’ revenue expectations last quarter, reporting revenues of $1.52 billion, up 11.1% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ organic revenue estimates but full-year EPS guidance slightly missing analysts’ expectations. Is Hubbell a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Hubbell’s revenue to grow 12.2% year on year, improving from the 2.2% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hubbell has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Hubbell’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Acuity Brands reported revenues up 1.6%, topping estimates by 1.2%. Allegion traded up 9.6% following the results. Read our full analysis of Allegion’s results here and Acuity Brands’s results here. In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Hubbell is down 5.6% during the same time and is heading into earnings with an average analyst price target of $556.30 (compared to the current share price of $486.09). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

Hubbell (HUBB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This electrical products manufacturer is expected to post quarterly earnings of $5.31 per share in its upcoming report, which represents a year-over-year change of +7.7%. Revenues are expected to be $1.67 billion, up 12.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.61% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Hubbell, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.62%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Hubbell will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Hubbell would post earnings of $3.87 per share when it actually produced earnings of $3.93, delivering a surprise of +1.55%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Hubbell appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hubbell Inc (HUBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research