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$HUB.B: Hubbell beats by $0.06, beats on revs; reaffirms FY12 revs guidance (81.54)
Reports Q2 (Jun) earnings of $1.29 per share, $0.06 better than the Capital IQ Consensus Estimate of $1.23; revenues rose 9.8% year/year to $778.4 mln vs the $765.54 mln consensus. Co reaffirms guidance for FY12, sees FY12 revs growth at the high end of +6-8% to ~$3.04-3.10 bln vs. $3.1 bln Capital IQ Consensus Estimate. "As we have previously indicated, the second half comparisons to last year are more challenging due in large part to the significant level of transmission project shipments recorded in the second half of 2011. Looking at the specific markets, we have slightly increased our outlook for the utility market. We expect the growth to be led by strong demand for transmission related projects while distribution products should benefit from higher spending on maintenance of the network. Turning to the non-residential construction market, we do not expect any meaningful improvement in demand for new construction. However, we expect continued stronger demand in areas such as renovation and relight activity to allow us to grow overall within this market. We have increased our outlook for the residential market due to the strength of multi-family housing demand. The one end market where we have lowered our forecast slightly is in the industrial sector. We now have greater visibility into the second half for our longer cycle high voltage test business and we expect that to be weaker in the short term. In addition, our businesses that are exposed to general industrial production have recently slowed somewhat although we continue to expect growth in that area." Mr. Powers concluded "Based on our strong performance in the first half of the year, we anticipate being able to generate record EPS in 2012. We expect to increase our operating margin by at least 50 basis points for the year due to the higher sales and benefit of favorable pricing in excess of commodity costs."
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