NYSE$HUBB

Hubbell Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter and full year results, demonstrating strong fundamental trends and operating margin expansion.

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.

Headline financials

Total Revenue

$1.22B

Previous: $1.1B+10.9%
EPS (adj)

$2.60

Previous: $2.07+25.6%
Free Cash Flow

$180M

Previous: $206M-12.5%
Net Income

$124M

Previous: $101M+22.3%
Operating Income

$172M

Previous: $134M+28.1%
Gross Profit

$367M

Previous: $290M+26.5%
Cash & Equivalents

$441M

Previous: $286M+53.9%
Total Assets

$5.4B

Previous: $5.28B+2.3%
Stock-Based Comp

$2.8M

Previous: $1M+180.0%

Revenue & EPS history

Hubbell · Revenue · Quarterly

$1.22B

Q4 2022+10.9%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Hubbell · $1.22B total across 2 segments · Q4 2022

  • Utility Solutions
    $716M
  • Electrical Solutions
    $503M

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2022

Historical avgQ4 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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