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Mar 31, 2023
Hubbell Q1 2023 Earnings Report
Hubbell's Q1 2023 results were reported, with strong performance driven by grid modernization and electrification.
Key Takeaways
Hubbell reported a strong start to 2023, with robust demand for products and solutions driving net sales growth of 11% and organic growth of 10%. The company is raising its full-year EPS guidance due to the strong first quarter results.
Q1 diluted EPS from continuing operations was $3.37; adjusted diluted EPS from continuing operations was $3.61.
Q1 net sales increased by 11% (organic +10%).
Operating margin expanded by 700 bps; adjusted operating margin expanded by 680 bps.
Full year 2023 diluted EPS from continuing operations is raised to $12.00-$12.50; adjusted diluted EPS of $13.00-$13.50.
Hubbell
Hubbell
Hubbell Revenue by Segment
Revenue by Segment
Utility Solutions Revenue
CapyFin.comElectrical Solutions Revenue
CapyFin.com Forward Guidance
For the full year 2023, Hubbell anticipates diluted earnings per share from continuing operations in the range of $12.00-$12.50 and anticipates adjusted diluted earnings per share from continuing operations in the range of $13.00-$13.50. Hubbell anticipates full year 2023 total sales growth of 8-10% and organic net sales growth of 7-9%, as compared to full year 2022.
Positive Outlook
- Diluted earnings per share from continuing operations in the range of $12.00-$12.50.
- Adjusted diluted earnings per share from continuing operations in the range of $13.00-$13.50.
- Full year 2023 total sales growth of 8-10%.
- Organic net sales growth of 7-9% as compared to full year 2022.
- Full year 2023 free cash flow conversion of 90% to 95% of adjusted net income from continuing operations.
Challenges Ahead
- Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.00 for the full year.
- The diluted EPS and Adjusted EPS ranges are based on an adjusted tax rate of 22.5% to 23.0%.
- Includes approximately $0.25 of anticipated restructuring and related investment.
- Unfavorable foreign currency exchange rates and the potential use of hedging instruments to hedge the exposure to fluctuating rates of foreign currency exchange on inventory purchases
- Lingering impact of the COVID-19 pandemic, including ongoing supply chain issues
Revenue & Expenses
Visualization of income flow from segment revenue to net income