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Dec 31, 2022
Hubbell Q4 2022 Earnings Report
Reported fourth quarter and full year results, demonstrating strong fundamental trends and operating margin expansion.
Key Takeaways
Hubbell Incorporated reported strong Q4 2022 results, with net sales increasing by 11% and organic net sales growing by 10%. Diluted EPS from continuing operations was $2.27, and adjusted diluted EPS was $2.60. The company's performance was driven by attractive markets, strong price realization, and consistent execution.
Q4 diluted EPS from continuing operations was $2.27; adjusted diluted EPS from continuing operations was $2.60.
Q4 net sales from continuing operations increased by 11% (organic +10%).
Utility Solutions demand remained strong, with orders outpacing shipment levels.
Electrical Solutions orders and shipments softened as expected due to customer inventory management.
Hubbell
Hubbell
Hubbell Revenue by Segment
Revenue by Segment
Utility Solutions Revenue
CapyFin.comElectrical Solutions Revenue
CapyFin.com Forward Guidance
For the full year 2023, Hubbell anticipates total sales growth of 5-7% and organic sales growth of 4-6%. Hubbell expects 2023 GAAP diluted earnings per share in the range of $10.00 to $10.50 and adjusted diluted earnings per share from continuing operations in the range of $11.00 to $11.50.
Positive Outlook
- Total sales growth of 5-7% is anticipated.
- Organic sales growth of 4-6% is expected.
- Acquisitions are anticipated to contribute approximately 1% to total sales growth.
- 2023 GAAP diluted earnings per share is expected in the range of $10.00 to $10.50.
- Adjusted diluted earnings per share from continuing operations is expected in the range of $11.00 to $11.50.
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 22.5 to 23.0%.
- Includes approximately $0.25 of anticipated restructuring and related investment.
- Full year 2023 free cash flow conversion of 90 to 95% of adjusted net income is expected.
- Unspecified variability of excluded items may have a significant, and potentially unpredictable, impact on future GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income