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Jun 30, 2021
Hubbell Q2 2021 Earnings Report
Hubbell reported a strong second quarter with organic growth and adjusted earnings per share growth exceeding 20%.
Key Takeaways
Hubbell's Q2 2021 earnings showcased strong performance with a 26% increase in net sales (21% organic) and adjusted diluted EPS of $2.36. The company updated its FY21 reported diluted EPS to $7.05-$7.35 and raised its adjusted diluted EPS to $8.50-$8.80.
Q2 net sales increased by 26% (organic growth of 21%).
Q2 diluted EPS was reported at $1.74; adjusted diluted EPS reached $2.36.
Full year 2021 reported diluted EPS is updated to a range of $7.05 to $7.35.
Full year 2021 adjusted diluted EPS is raised to a range of $8.50 to $8.80.
Hubbell
Hubbell
Hubbell Revenue by Segment
Revenue by Segment
Utility Solutions Revenue
CapyFin.comElectrical Solutions Revenue
CapyFin.com Forward Guidance
For the full year 2021, Hubbell anticipates sales growth of 11-13%, comprised of 8-10% organic growth (including 4% price realization), and approximately 3% growth from acquisitions. The company anticipates 2021 earnings per diluted share in the range of $7.05-$7.35 and adjusted diluted earnings per share in the range of $8.50-$8.80. Full year 2021 free cash flow is expected to be approximately $500 million.
Positive Outlook
- Sales growth of 11-13% is expected.
- Organic growth is projected at 8-10%, including 4% price realization.
- Acquisitions are expected to contribute approximately 3% growth.
- Adjusted EPS is anticipated in the range of $8.50-$8.80.
- Full year 2021 free cash flow is expected to be approximately $500 million.
Challenges Ahead
- The earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of 21-22%.
- Ranges include approximately $0.30 per share of anticipated restructuring and related investment.
- Ranges incorporate the impact of acquisitions, which are anticipated to add approximately $0.25 to full year adjusted earnings.
- Headwinds from price/material and supply chain costs
- The non-repeat of prior year temporary cost savings
Revenue & Expenses
Visualization of income flow from segment revenue to net income