Research Desk Line-up: TE Connectivity Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Hubbell Inc. (NYSE: HUBB), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=HUBB, following the Company's reporting of its third quarter fiscal 2017 operating results on October 24, 2017. The electrical product's manufacturer reported a 1% growth in adjusted EPS, while it also provided guidance for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Diversified Electronics industry. Pro-TD has currently selected TE Connectivity Ltd (NYSE: TEL) for due-diligence and potential coverage as the Company reported on November 01, 2017, its financial results for Q4 FY17 and FY17 which ended on September 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on TE Connectivity when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HUBB; also brushing on TEL. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=HUBB
http://protraderdaily.com/optin/'symbol=TEL
Earnings Reviewed
Hubbell reported net sales of $950.5 million in Q3 2017, an increase of 5% compared to the $907.4 million reported in Q3 2016. The Company's revenue number fell short of analysts' estimates of $960.7 million.
During Q3 2017, Hubbell's operating income grew 8% to $146.4 million compared to $136.0 million in Q3 2016. Excluding restructuring and related costs in both periods, adjusted operating income was $152 million in the reported quarter compared to $142 million in the prior year's same quarter. During the reported quarter, the Company refinanced and redeemed $300 million of Senior Notes due in 2018 and recognized a $10 million loss in connection with the early extinguishment.
Net income attributable to Hubbell in Q3 2017 was $80.8 million, or $1.47 per share, compared to $86.7 million, or $1.56 per share, in Q3 2016. Excluding the loss on debt extinguishment in the reported quarter and restructuring and related costs in Q3 2017 and Q3 2016, adjusted net income attributable to Hubbell were $90.7 million, or $1.65 per share, in Q3 2017 compared to $90.4 million, or $1.63 per share, in Q3 2016. The Company's earnings beat Wall Street's estimates of $1.50 per share.
Hubbell's Segment Review
During Q3 2017, the Company's Electrical segment net sales grew 3% to $654 million compared to $635 million reported in Q3 2016. The Company's organic sales grew 2% in the reported quarter while acquisitions added 1%.
The Electrical segment's operating income totaled $86 million, or 13.1% of net sales, for Q3 2017 compared to $81 million, or 12.7% of net sales, in Q3 2016. Excluding restructuring and related costs, the segment's adjusted operating income was $90 million, or 13.8% of net sales, compared to $86 million, or 13.6% of net sales, in the year-ago corresponding period. The growth in adjusted operating income and adjusted operating margin were primarily attributed to savings from cost actions and the benefit of the higher volumes.
For Q3 2017, the Power segment's net sales jumped 9% to $297 million compared to $273 million reported in Q3 2016. The division's organic sales grew 8% while acquisitions added 1% to net sales in the reported quarter.
The Power Segment's operating income increased 10% to $61 million on a y-o-y basis in Q3 2017, and was up 30 basis points to 20.5% of net sales. Excluding restructuring and related costs, the segment's adjusted operating income was $62 million, or 20.9% of net sales, in the reported quarter compared to $56 million, or 20.5% of net sales, in the prior year's same quarter. The increases in adjusted operating income and adjusted operating margin were primarily due to productivity gains in excess of cost increases and higher volume.
Cash Matters
Hubbell's net cash provided from operating activities was $97 million in Q3 2017 versus $143 million in Q3 2016. The Company's free cash flow for the reported quarter totaled $76 million versus $127 million in the year-ago comparable period.
On October 20, 2017, Hubbell's Board of Directors declared a 10% increase in the common stock dividend rate. The new annual payment of $3.08 per share, or $0.77 per quarter, compares to the former rate of $2.80 or $0.70 per quarter. The dividend will be paid on December 15, 2017, to shareholders of record on November 30, 2017. Additionally, the Board of Directors approved a new share repurchase authorization of up to $400 million. This new program is set to expire in October 2020.
Outlook
For the full year 2017, Hubbell continues to expect end-market growth in the range of 2.5% to 3.0% in the aggregate, while acquisitions are expected to contribute approximately 2% to net sales. The Company now expects 2017 diluted earnings per share in the range of $5.40 to $5.50. Hubbell continues to estimate free cash flow to equal net income in 2017.
Stock Performance
At the closing bell, on Monday, November 06, 2017, Hubbell's stock slightly rose 0.34%, ending the trading session at $125.55. A total volume of 222.02 thousand shares have exchanged hands. The Company's stock price surged 6.16% in the last three months, 9.83% in the past six months, and 21.69% in the previous twelve months. Moreover, the stock gained 7.58% since the start of the year. The stock is trading at a PE ratio of 24.23 and has a dividend yield of 2.45%. The stock currently has a market cap of $6.93 billion.
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