NYSE$HUBB

Hubbell Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong Q2 2022 earnings with significant organic net sales growth and operating margin expansion.

Hubbell reported strong Q2 2022 results, with a 19% increase in net sales and a 20% organic net sales growth. The company's diluted EPS was $2.51, and adjusted diluted EPS was $2.81. Hubbell also raised its full-year 2022 diluted EPS guidance to $8.25-$8.65 and adjusted diluted EPS to $9.40-$9.80. Additionally, Hubbell closed on two bolt-on acquisitions in July, PCX and Ripley Tools.

  • Q2 net sales increased by 19% with organic growth of 20%.
  • Diluted EPS for Q2 was $2.51, while adjusted diluted EPS reached $2.81.
  • Full-year 2022 diluted EPS guidance raised to $8.25-$8.65; adjusted diluted EPS to $9.40-$9.80.
  • Closed two bolt-on acquisitions in July, PCX and Ripley Tools.

Headline financials

Total Revenue

$1.26B

Previous: $1.19B+5.4%
EPS (adj)

$2.81

Previous: $2.36+19.1%
Free Cash Flow

$122M

Previous: $95.8M+27.3%
Net Income

$122M

Previous: $95.8M+27.3%
Operating Income

$191M

Previous: $153M+24.8%
Gross Profit

$383M

Previous: $331M+15.8%
Cash & Equivalents

$424M

Previous: $265M+59.8%
Total Assets

$5.24B

Previous: $5.17B+1.3%
Stock-Based Comp

$5.7M

Previous: $4.2M+35.7%

Revenue & EPS history

Hubbell · Revenue · Quarterly

$1.26B

Q2 2022+5.4%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Hubbell · $1.26B total across 2 segments · Q2 2022

  • Utility Solutions
    $729M+23.8%
  • Electrical Solutions
    $528M-12.4%

Forward guidance

Hubbell anticipates full year 2022 total sales growth of +14-16% and organic net sales growth of +13-15%. The Company anticipates net M&A contributing +1% to full year sales growth and approximately $0.10 of full year Adjusted EPS.

Tailwinds

  • Full year 2022 total sales growth of +14-16%.
  • Organic net sales growth of +13-15%.
  • Net M&A contributing +1% to full year sales growth.
  • Approximately $0.10 of full year Adjusted EPS from M&A.
  • Free cash flow conversion of 90-100% of adjusted net income.

Headwinds

  • Anticipation of accelerated investments in the second half of 2022.
  • Approximately $0.40 per share of anticipated restructuring and related investments for the full year 2022.
  • The earnings per share and adjusted earnings per share ranges continue to be based on an adjusted tax rate of 22.0% to 22.5%.
  • Unspecified accelerated investments in restructuring, footprint optimization, capacity expansion and innovation initiatives
  • Unspecified restructuring and related investments anticipated for full year 2022

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 2022

Historical avgQ2 2022

+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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