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Dec 31, 2020
Hubbell Q4 2020 Earnings Report
Hubbell reported Q4 2020 earnings, with adjusted EPS of $1.76 and net sales decreased by 6%.
Key Takeaways
Hubbell's Q4 2020 results showed a decrease in net sales by 6%, with organic sales declining by 7% and acquisitions contributing 1%. The company closed three accretive bolt-on acquisitions during the quarter. Diluted EPS was reported at $1.48, while adjusted diluted EPS reached $1.76.
Q4 diluted EPS was $1.48; adjusted diluted EPS was $1.76.
Q4 net sales decreased 6% (organic -7%, Acquisitions +1%).
Closed three accretive bolt-on acquisitions in the fourth quarter.
Full Year 2020 free cash flow of $560 million.
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 6-8%, comprised of 3-5% organic growth and approximately 3% growth from acquisitions. Hubbell anticipates 2021 adjusted diluted earnings per share (“Adjusted EPS”) in the range of $8.10 to $8.50 and GAAP diluted earnings per share expectations in the range of $6.95 to $7.35.
Positive Outlook
- Sales growth of 6-8% expected.
- Organic growth of 3-5% anticipated.
- Acquisitions projected to contribute approximately 3% to growth.
- Growth of 2-4% in Utility T&D Components expected.
- Growth of 4-6% in Utility Communications and Controls expected.
Challenges Ahead
- Growth of (2-4%) in Non-Residential is expected.
- Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.15 per share for the full year.
- The earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of 22-23% and include approximately $0.30 of anticipated restructuring and related investment.
- The ranges also incorporate the impact of acquisitions, which we anticipate adding approximately $0.25 to full year adjusted earnings.
- Company expects full year 2021 free cash flow conversion of approximately 110% on adjusted net income.
Revenue & Expenses
Visualization of income flow from segment revenue to net income