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Dec 31, 2021
Hubbell Q4 2021 Earnings Report
Reported strong Q4 2021 and full year results, driven by sales growth and strategic initiatives.
Key Takeaways
Hubbell Incorporated reported a strong finish to 2021, with Q4 sales growth of 20% and diluted EPS from continuing operations of $1.81. The company successfully navigated a dynamic supply chain environment, with end markets remaining strong due to grid modernization and electrification. Hubbell anticipates attractive double digit year-over-year growth in adjusted earnings per share for 2022.
Q4 diluted EPS from continuing operations was $1.81; adjusted diluted EPS from continuing operations was $2.07.
Q4 net sales from continuing operations increased by 20% (organic +16%).
Electrical Solutions segment net sales increased 22% to $489 million.
Utility Solutions segment net sales increased 19% to $612 million.
Forward Guidance
Hubbell anticipates organic sales growth from continuing operations of 8-10% for the full year 2022. The company expects GAAP diluted earnings per share in the range of $7.75 to $8.25 and adjusted diluted earnings per share from continuing operations in the range of $8.75 to $9.25. Full year 2022 free cash flow conversion is expected to be 90 to 100% of adjusted net income.
Positive Outlook
- Organic sales growth from continuing operations of 8-10%.
- GAAP diluted earnings per share expected range of $7.75 to $8.25.
- Adjusted diluted earnings per share range of $8.75 to $9.25.
- Free cash flow conversion of 90 to 100% of adjusted net income.
- Impact on sales of M&A and foreign exchange are expected to be approximately neutral.
Challenges Ahead
- Adjusted EPS excludes amortization of acquisition-related intangible assets, which is expected to be approximately $1.00 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 to 22.5%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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