NYSE$HUBB

Hubbell Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Hubbell reported Q4 2020 earnings, with adjusted EPS of $1.76 and net sales decreased by 6%.

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.

Headline financials

Total Revenue

$1.04B

Previous: $1.1B-5.9%
EPS (adj)

$1.76

Previous: $1.91-7.9%
Free Cash Flow

$156M

Previous: $185M-15.9%
Net Income

$82.6M

Previous: $103M-19.9%
Operating Income

$120M

Previous: $136M-11.8%
Gross Profit

$286M

Previous: $326M-12.4%
Cash & Equivalents

$260M

Previous: $182M+42.6%
Total Assets

$5.09B

Previous: $4.9B+3.7%
Stock-Based Comp

$3.9M

Previous: $2.9M+34.5%

Revenue & EPS history

Hubbell · Revenue · Quarterly

$1.04B

Q4 2020-5.9%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Hubbell · $1.04B total across 2 segments · Q4 2020

  • Electrical Solutions
    $559M
  • Utility Solutions
    $479M

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2020

Historical avgQ4 2020

+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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