- Hubbell's fourth quarter results were a little messy, but underlying performance was largely in-line, albeit with a little weakness in Utility due to component shortages.
- Base demand in the Electrical business looks strong as industrial construction and recovery spending continue, and grid hardening continues to drive good T&D demand.
- Selling the commercial & lighting business is good for margins, but does create some dilution in the near term from lost revenue.
- Hubbell shares are borderline on valuation; I like the strong pricing and better margin leverage, as well as utility spending leverage, but sentiment is a risk.
For further details see:
Hubbell Lighting It Up With Pricing, But Sentiment On Electrification Plays Dimming