Benzinga | Feb 1, 2021 10:12AM EST

Hubbell's Earnings: A Preview

Hubbell (NYSE:HUBB) releases its next round of earnings this Tuesday, February 02. Here is Benzinga's essential guide to Hubbell's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Hubbell EPS is expected to be around $1.77, according to sell-side analysts. Sales will likely be near $1.06 billion. In the same quarter last year, Hubbell posted EPS of $1.91 on sales of $1.10 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 7.33%. Sales would have fallen 3.9% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 2.02 1.61 1.52 1.85EPS Actual 2.30 1.87 1.64 1.91Revenue Estimate 1.09 B 1.03 B 1.06 B 1.15 BRevenue Actual 1.11 B 949.20 M 1.09 B 1.10 B

Stock Performance

Over the last 52-week period, shares are up 10.31%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hubbell is scheduled to hold the call at 10:00:00 ET and can be accessed here.