Hubbell Q3 2022 Earnings Report
Key Takeaways
Hubbell reported a strong third quarter with net sales up 21% and organic sales up 20%. Diluted EPS was $2.78, and adjusted diluted EPS was $3.08. The company raised its full-year EPS guidance to $9.10-$9.30 and adjusted diluted EPS to $10.25-$10.45.
Q3 diluted EPS of $2.78; adjusted diluted EPS of $3.08
Q3 net sales +21% (organic +20%)
Operating margin expansion of 200 bps; adjusted operating margin expansion of 190 bps
Raised FY22 diluted EPS to $9.10-$9.30; adjusted diluted EPS of $10.25-$10.45
Hubbell
Hubbell
Forward Guidance
For the full year 2022, Hubbell anticipates diluted earnings per share in the range of $9.10-$9.30 and anticipates adjusted diluted earnings per share in the range of $10.25-$10.45. Hubbell anticipates full year 2022 total sales growth of +18-19% and organic net sales growth of +17-18%, as compared to full year 2021.
Positive Outlook
- Full year 2022 total sales growth of +18-19%
- Organic net sales growth of +17-18%
- Net M&A contributing +1% to full year sales growth
- Net M&A contributing approximately $0.10 of full year Adjusted EPS
- Full year 2022 free cash flow conversion of approximately 90% of adjusted net income
Challenges Ahead
- Anticipates amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.05 for the full year
- Anticipates approximately $0.10 due to a pension settlement charge
- Anticipates accelerated investments in the fourth quarter of 2022
- Expects approximately $0.30-$0.40 per share of restructuring and related investments for the full year 2022
- Earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of ~22%