Hubbell Inc (HUBB) Reports Solid Q4 and Full Year 2023 Financial Results
Q4 Diluted EPS: $3.16 from continuing operations; adjusted diluted EPS at $3.69.
Full Year Diluted EPS: $14.05 from continuing operations; adjusted diluted EPS at $15.33.
Net Sales: Q4 net sales increased by 10% (organic growth of 8%); full year net sales reached $5.4 billion.
Operating Income: Q4 operating income improved to $225.6 million, representing 16.8% of net sales.
Free Cash Flow: Q4 free cash flow was a robust $284 million, up from $180 million in the prior year.
Acquisitions and Divestitures: Acquired Northern Star Holdings and entered into an agreement to sell residential lighting business.
2024 Outlook: Anticipates 8-10% total sales growth with organic sales growth of 3-5%.
On January 30, 2024, Hubbell Inc (NYSE:HUBB) released its 8-K filing, detailing the financial results for the fourth quarter and full year ended December 31, 2023. Hubbell, a diversified conglomerate industrial company, primarily competes in the electrical components market, serving critical segments of the U.S. electrical supply chain.
Hubbell's Q4 performance showcased a 10% increase in net sales from continuing operations, with organic growth contributing 8%. The company's full-year diluted EPS from continuing operations stood at $14.05, with an adjusted figure of $15.33. The adjusted diluted EPS for Q4 was reported at $3.69, excluding certain costs such as amortization of acquisition-related intangible assets and transaction, integration, and separation costs.
Chairman, President, and CEO Gerben Bakker commented on the results, stating,
Hubbell delivered a strong finish to a strong year... For the full year 2023, the Company generated over 40% operating profit and earnings growth for our shareholders, while accelerating investments back into our business to serve our customers and drive long-term growth and productivity."
Financial Highlights and Segment Performance
The Utility Solutions segment saw a 13% increase in Q4 net sales, reaching $811 million, with organic net sales up by 9%. The segment's operating income improved significantly, with adjusted operating income at $174 million, or 21.4% of net sales. The Electrical Solutions segment also experienced growth, with Q4 net sales increasing by 6% to $534 million, and operating income reaching $83 million, or 15.5% of net sales.
Hubbell's strategic moves included the acquisition of Northern Star Holdings, Inc. for approximately $1.1 billion, and the agreement to sell its residential lighting business for $131 million, subject to customary closing conditions.
Net cash provided by operating activities from continuing operations was $346 million in Q4, and the company reported a strong free cash flow of $284 million for the same period. For the full year 2024, Hubbell anticipates total sales growth of 8-10%, with organic sales growth of 3-5%. The company expects GAAP diluted earnings per share from continuing operations in the range of $14.40 to $14.90 and an adjusted diluted earnings per share in the range of $16.00 to $16.50.
Balance Sheet and Cash Flow Statement
As of December 31, 2023, Hubbell's balance sheet reflected $336.1 million in cash and cash equivalents. The company's total assets stood at $6.9 billion, with total liabilities at $4 billion. The condensed consolidated statement of cash flows indicated a net cash provided by operating activities from continuing operations of $880.8 million for the twelve months ended December 31, 2023.
Hubbell's financial achievements, including robust sales growth, margin expansion, and strategic portfolio adjustments, underscore the company's strong position in the industrial products sector. These results reflect the company's ability to navigate market challenges and capitalize on growth opportunities, positioning it well for continued success in the coming year.
For more detailed information on Hubbell Inc (NYSE:HUBB)'s financial performance, investors and interested parties can access the full earnings report and conference call details on Hubbell's website.
Explore the complete 8-K earnings release (here) from Hubbell Inc for further details.
This article first appeared on GuruFocus.
