NYSE$HUBB

Hubbell Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Hubbell reported a strong second quarter with organic growth and adjusted earnings per share growth exceeding 20%.

Hubbell's Q2 2021 earnings showcased strong performance with a 26% increase in net sales (21% organic) and adjusted diluted EPS of $2.36. The company updated its FY21 reported diluted EPS to $7.05-$7.35 and raised its adjusted diluted EPS to $8.50-$8.80.

  • Q2 net sales increased by 26% (organic growth of 21%).
  • Q2 diluted EPS was reported at $1.74; adjusted diluted EPS reached $2.36.
  • Full year 2021 reported diluted EPS is updated to a range of $7.05 to $7.35.
  • Full year 2021 adjusted diluted EPS is raised to a range of $8.50 to $8.80.

Headline financials

Total Revenue

$1.19B

Previous: $949M+25.6%
EPS (adj)

$2.36

Previous: $1.87+26.2%
Free Cash Flow

$95.8M

Previous: $88.2M+8.6%
Net Income

$95.8M

Previous: $88.2M+8.6%
Operating Income

$153M

Previous: $132M+16.1%
Gross Profit

$331M

Previous: $281M+17.9%
Cash & Equivalents

$265M

Previous: $485M-45.3%
Total Assets

$5.17B

Previous: $5.06B+2.3%
Stock-Based Comp

$4.2M

Previous: $4.3M-2.3%

Revenue & EPS history

Hubbell · Revenue · Quarterly

$1.19B

Q2 2021+25.6%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Hubbell · $1.19B total across 2 segments · Q2 2021

  • Electrical Solutions
    $603M
  • Utility Solutions
    $589M

Forward guidance

For the full year 2021, Hubbell anticipates sales growth of 11-13%, comprised of 8-10% organic growth (including 4% price realization), and approximately 3% growth from acquisitions. The company anticipates 2021 earnings per diluted share in the range of $7.05-$7.35 and adjusted diluted earnings per share in the range of $8.50-$8.80. Full year 2021 free cash flow is expected to be approximately $500 million.

Tailwinds

  • Sales growth of 11-13% is expected.
  • Organic growth is projected at 8-10%, including 4% price realization.
  • Acquisitions are expected to contribute approximately 3% growth.
  • Adjusted EPS is anticipated in the range of $8.50-$8.80.
  • Full year 2021 free cash flow is expected to be approximately $500 million.

Headwinds

  • The earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of 21-22%.
  • Ranges include approximately $0.30 per share of anticipated restructuring and related investment.
  • Ranges incorporate the impact of acquisitions, which are anticipated to add approximately $0.25 to full year adjusted earnings.
  • Headwinds from price/material and supply chain costs
  • The non-repeat of prior year temporary cost savings

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.9%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.1%

Avg return

30 days after

69%

47 / 68 earnings

Positive

+11.9%

Q1 2023

Best reaction

-16.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-7.0%-13.3%
Q4 2025+1.7%+1.7%-3.8%
Q3 2025+4.9%+8.3%-1.3%
Q1 2025-5.5%-4.1%+7.3%
Q4 2024-1.9%-1.9%-15.3%
Q3 2024-4.0%-5.3%+2.0%
Q2 2024+7.8%-0.2%+7.8%
Q1 2024-8.3%-6.7%-4.1%
Q4 2023+0.9%+6.5%+14.5%
Q3 2023-1.5%-0.5%+5.9%
Q2 2023-7.1%-7.1%-5.2%
Q1 2023+11.9%+15.9%+23.3%
Q4 2022+3.7%+4.9%+8.5%
Q3 2022+6.7%+6.2%+14.7%
Q2 2022+7.3%+12.0%+12.8%
Q1 2022+3.7%+3.2%-1.4%
Q4 2021-0.9%+0.1%-4.0%
Q3 2021+0.2%+4.8%+9.6%
Q2 2021+0.8%+3.2%+5.7%
Q1 2021+0.5%+0.8%-0.4%
Q4 2020+1.5%+1.9%+10.0%
Q3 2020-3.2%-2.3%+9.1%
Q2 2020+0.8%+2.3%+9.0%
Q1 2020-3.7%-4.1%-3.4%
Q4 2019+1.9%-0.1%-6.2%
Q3 2019+2.4%+2.6%+5.8%
Q2 2019+3.6%+2.0%+3.2%
Q1 2019+3.1%+5.2%-5.0%
Q4 2018+3.6%+3.7%+7.5%
Q3 2018-16.1%-17.8%-12.1%
Q2 2018+6.6%+7.0%+9.2%
Q1 2018-9.2%-11.8%-6.5%
Q4 2017-1.5%-3.0%-6.2%
Q3 2017+3.8%+3.8%-0.3%
Q2 2017+1.8%+2.7%-5.4%
Q1 2017-6.1%-6.9%-3.8%
Q4 2016+3.7%+6.7%+2.5%
Q3 2016+0.3%-0.3%+7.8%
Q2 2016+1.7%+3.5%+3.8%
Q1 2016-0.6%
Q4 2015+4.8%
Q3 2015+7.6%
Q2 2015-0.1%
Q1 2015-0.8%
Q4 2014+1.4%
Q3 2014+1.0%
Q2 2014+0.8%
Q1 2014-0.6%
Q4 2013+1.5%
Q3 2013+0.8%
Q2 2013+3.1%
Q1 2013+1.3%
Q2 2012+0.4%
Q4 2012+0.4%
Q3 2012-1.9%
Q1 2012-0.5%
Q2 2011+0.5%
Q4 2011+0.5%
Q3 2011+5.9%
Q1 2010-0.6%
Q1 2011-0.6%
Q4 2008+1.9%
Q2 2010+1.9%
Q4 2010+1.9%
Q3 2010+2.2%
Q3 2009+2.2%
Q2 2009+4.6%
Q4 2009+4.6%

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