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Hubbell appoints new director with utility expertise

Published 11/20/2024, 06:06 AM
HUBB
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SHELTON, CT - Hubbell Incorporated (NYSE: HUBB), a leader in electrical and utility solutions, announced today the election of Garrick J. Rochow to its Board of Directors, effective immediately. Rochow's election expands the board to ten members, nine of whom are independent.

Garrick J. Rochow currently serves as President, CEO, and a Director of CMS Energy Corporation (NYSE:CMS) and its subsidiary, Consumers Energy Company. His extensive experience in the utility sector is expected to provide valuable insights to Hubbell's Board as the company focuses on grid modernization and electrification solutions.

Rochow has held various leadership roles during his more than twenty-year tenure at CMS Energy, including executive vice president of operations and senior vice president of distribution and customer operations. He has been a Director of CMS Energy and Consumers Energy since December 2020.

Hubbell's Chairman, President, and CEO, Gerben Bakker, expressed confidence in Rochow's ability to contribute to the Board's effectiveness, citing his deep understanding of the utility industry.

With a background in environmental engineering and a master's degree in business administration, Rochow also actively participates on the boards of several civic and business organizations.

Hubbell Incorporated, with 2023 revenues of $5.4 billion, is committed to providing safe, reliable, and efficient utility and electrical infrastructure. This strategic board appointment is part of the company's ongoing efforts to enhance its governance and industry expertise. The information for this article is based on a press release statement.

In other recent news, Hubbell Incorporated saw a robust third quarter in 2024, marked by a 14% year-over-year increase in adjusted earnings per share and a significant expansion in adjusted operating margins. Despite challenges in the Telecom (BCBA:TECO2m) sector, the company raised its full-year outlook, anticipating double-digit adjusted operating profit growth. Bernstein initiated coverage on Hubbell with an Outperform rating, citing the company's attractive exposure in the electrical grid, reshoring of manufacturing, data centers, and renewable energy sectors. The firm forecasts a compound annual growth rate (CAGR) of 7-8% for Hubbell's revenue, surpassing street expectations of less than 5%. Bernstein also projects an improvement in Hubbell's operating margins, and by 2025, anticipates the company's earnings per share could reach $18.59. The company has overcome operational disruptions caused by Hurricanes Helene and Milton, expecting these storm-related orders to contribute positively to the fourth quarter. These recent developments suggest Hubbell is successfully navigating industry-specific challenges while leveraging its strategic initiatives.

InvestingPro Insights

The addition of Garrick J. Rochow to Hubbell's Board of Directors aligns well with the company's strong financial performance and market position. According to InvestingPro data, Hubbell boasts a market capitalization of $24.33 billion and has demonstrated impressive revenue growth of 7.5% over the last twelve months as of Q3 2024. This growth trajectory is particularly relevant given Rochow's experience in the utility sector and Hubbell's focus on grid modernization and electrification solutions.

InvestingPro Tips highlight Hubbell's financial stability and shareholder-friendly policies. The company has maintained dividend payments for 54 consecutive years and has raised its dividend for 17 consecutive years. This consistent dividend history underscores Hubbell's commitment to returning value to shareholders, which may be further enhanced by Rochow's insights from his leadership at CMS Energy.

Moreover, Hubbell's strong financial position is evident in its operating income margin of 19.01% for the last twelve months as of Q3 2024. This robust profitability, coupled with the fact that liquid assets exceed short-term obligations, suggests that the company is well-positioned to invest in growth initiatives that align with Rochow's expertise in utility operations and grid modernization.

Investors seeking more comprehensive analysis can find 14 additional InvestingPro Tips for Hubbell, offering deeper insights into the company's valuation, growth prospects, and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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