Mar 31, 2022

Hubbell Q1 2022 Earnings Report

Reported strong start to the year with significant organic net sales growth and EPS, driven by price realization and volume growth.

Key Takeaways

Hubbell reported a strong first quarter in 2022, with a 21% increase in organic net sales, driven by both price and volume growth. Diluted EPS was reported at $1.88, and adjusted diluted EPS at $2.12. The company has raised its full-year 2022 diluted EPS guidance to $8.00-$8.40 and adjusted diluted EPS to $9.00-$9.40.

Q1 net sales increased by 21% (organic +21%).

Diluted EPS for Q1 was $1.88; adjusted diluted EPS was $2.12.

Full year 2022 diluted EPS guidance raised to $8.00-$8.40; adjusted diluted EPS guidance raised to $9.00-$9.40.

Grid modernization and electrification drove strong demand.

Total Revenue
$1.16B
Previous year: $1.08B
+7.2%
EPS
$2.12
Previous year: $1.72
+23.3%
Gross Profit
$323M
Previous year: $290M
+11.5%
Cash and Equivalents
$359M
Previous year: $434M
-17.2%
Free Cash Flow
-$35.8M
Previous year: $39M
-191.8%
Total Assets
$5.17B
Previous year: $5.29B
-2.3%

Hubbell

Hubbell

Forward Guidance

For the full year 2022, Hubbell anticipates diluted earnings per share in the range of $8.00-$8.40 and anticipates adjusted diluted earnings per share in the range of $9.00-$9.40. Hubbell anticipates 2022 total sales growth and organic net sales growth of 11-13%. The Company continues to expect full year 2022 free cash flow conversion of 90-100% of adjusted net income.

Positive Outlook

  • Diluted earnings per share in the range of $8.00-$8.40
  • Adjusted diluted earnings per share in the range of $9.00-$9.40
  • 2022 total sales growth of 11-13%
  • 2022 organic net sales growth of 11-13%
  • Full year 2022 free cash flow conversion of 90-100% of adjusted net income

Challenges Ahead

  • Amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.00 for the full year.
  • Adjusted EPS excludes amortization of acquisition-related intangible assets
  • The earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of 22 to 22.5%
  • Includes approximately $0.30 per share of anticipated restructuring and related investment.
  • Persisting supply chain headwinds resulting in manufacturing and transportation inefficiencies