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Sep 30, 2022
Hubbell Q3 2022 Earnings Report
Reported strong Q3 2022 results with significant operating margin expansion and operating profit growth.
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
Hubbell Revenue by Segment
Revenue by Segment
Utility Solutions Revenue
CapyFin.comElectrical Solutions Revenue
CapyFin.com 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%
Revenue & Expenses
Visualization of income flow from segment revenue to net income