Hubbell Inc (HUBB) Reports 5% Increase in Q3 Net Sales and Raises FY23 EPS Forecast
Hubbell Inc (NYSE:HUBB) reported a 5% increase in Q3 net sales, driven by organic growth and acquisitions.
The company's Q3 diluted EPS from continuing operations stood at $3.70, with an adjusted diluted EPS of $3.95.
Operating margin expanded by 460 basis points, with adjusted operating margin expansion of 440 basis points.
Hubbell Inc (NYSE:HUBB) raised its FY23 diluted EPS from continuing operations to $14.00-$14.25, with an adjusted diluted EPS of $15.00-$15.25.
On October 31, 2023, Hubbell Inc (NYSE:HUBB) released its earnings report for the third quarter ended September 30, 2023. The company reported a 5% increase in Q3 net sales, driven by organic growth of 4% and acquisitions contributing 1%. The company's Q3 diluted EPS from continuing operations was $3.70, with an adjusted diluted EPS of $3.95.
Performance Overview
Hubbell's Utility Solutions segment reported an 8% increase in net sales to $838 million in Q3 2023, compared to $775 million in Q3 2022. Organic net sales increased 7% in the quarter, while acquisitions added 1%. The segment's operating income was $187 million, or 22.3% of net sales, compared to $130 million, or 16.8% of net sales in the same period of 2022.
On the other hand, the Electrical Solutions segment reported a 1% decrease in net sales to $538 million in Q3 2023, compared to $542 million in Q3 2022. The segment's operating income was $90 million, or 16.6% of net sales, compared to $74 million, or 13.6% of net sales in the same period of 2022.
Financial Highlights
Net cash provided by operating activities from continuing operations was $194 million in Q3 2023, compared to $220 million in Q3 2022. Free cash flow was $159 million in Q3 2023, compared to $194 million in Q3 2022.
Outlook for 2023
For the full year 2023, Hubbell anticipates diluted earnings per share from continuing operations in the range of $14.00-$14.25 and adjusted diluted earnings per share from continuing operations in the range of $15.00-$15.25. The company anticipates full year 2023 total sales growth of approximately 8% and organic net sales growth of approximately 7%, as compared to full year 2022.
CEO Commentary
Hubbell delivered strong earnings growth for shareholders in the third quarter," said Gerben Bakker, Chairman, President and CEO. "We continued to drive significant margin expansion in the quarter through effective execution on price, cost and productivity, while also accelerating investment levels in capacity, productivity and innovation."
Our third quarter performance reflects continued execution off of a strong first half in 2023. As grid modernization and electrification drive investment in critical infrastructure, Hubbell is uniquely positioned to serve the evolving needs of our utility and electrical customers. We expect to deliver attractive profitable growth for shareholders in 2024 and beyond."
Explore the complete 8-K earnings release (here) from Hubbell Inc for further details.
This article first appeared on GuruFocus.
