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Dec 31, 2019
Hubbell Q4 2019 Earnings Report
Hubbell reported mixed Q4 2019 results with a sales decrease but solid operating performance.
Key Takeaways
Hubbell Incorporated reported Q4 2019 results with a 4% decrease in net sales, driven by a decline in the Electrical segment, while the Power segment saw a slight increase. The company's diluted EPS was $1.85, and adjusted diluted EPS was $1.91. Despite market uncertainties, Hubbell is implementing cost actions and operational improvements.
Q4 diluted EPS was $1.85, with an adjusted diluted EPS of $1.91.
Net sales for Q4 decreased by 4%, with organic sales down 3% and net M&A contributing a 1% decrease.
The company achieved its target of $500 million in free cash flow by 2020 ahead of schedule.
Hubbell anticipates end markets will grow approximately 1 - 3% for the full year 2020.
Hubbell
Hubbell
Forward Guidance
For the full year 2020, Hubbell anticipates adjusted diluted earnings per share in the range of $8.50 to $8.80 and GAAP diluted earnings per share expectations in the range of $7.50 to $7.80. The Company expects free cash flow to be ~110% of adjusted net income in 2020.
Positive Outlook
- End markets will grow approximately 1 - 3%.
- 3 - 4% growth in electrical T&D markets
- 1 - 2% in non-residential markets
- 2 - 4% in residential markets
- 1 - 3% in gas distribution markets
Challenges Ahead
- (2) - 2% in industrial markets
- (2) - 2% in oil markets
- Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.00 for the full year
- The earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of ~23% and include approximately $0.40 of anticipated restructuring and related investment.
- Sales growth from previously completed acquisitions is expected to fully offset the impact of divestitures.