Oct 29 (Reuters) - Electrical equipment maker Hubbell
on Thursday raised its 2024 adjusted profit forecast anticipating strong demand for its devices used in power grids.
The Connecticut-based company now expects full-year adjusted profit to be between $16.35 and $16.55 per share, above its earlier expectations of between $16.20 and $16.50 per share.
Hubbell has benefited from the ongoing U.S. power grid upgrades, which has boosted demand for its products such as insulators and arresters that help prevent outages and protect transmission lines from lightning strikes.
The U.S. government has been working to overhaul the country's electric transmission system, which is under pressure from extreme weather conditions and a growing number of power-hungry data centers.
In the third quarter, Hubbell's sales from the utility segment, which made up 61% of its total revenue in 2023, increased 11% from a year earlier.
"Performance in the quarter was led by strength in data center and renewables verticals," Hubbell CEO Gerben Bakker said.
However, sales in the electrical segment, which makes wiring and lighting fixtures, were down about 5%.
Hubbell reported an adjusted profit of $4.49 per share for the quarter, compared with analysts' average estimates of $4.45 per share, according to data compiled by LSEG.
Its revenue rose about 5% to $1.44 billion, compared with estimates of $1.48 billion.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shilpi Majumdar and Vijay Kishore)
((Kannaki.Deka@thomsonreuters.com))
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