Hubbell, the Shelton-based maker of utility and electrical products, has announced an upward revision of its full-year profit outlook. This adjustment is accompanied by plans to increase investment levels in the second half of the year. The company’s decision comes as demand for its products remains strong and supply-chain challenges begin to ease.
Revised Earnings Expectations
Previously, Hubbell projected full-year earnings from continuing operations to be in the range of $12.00 to $12.50 per share. However, the company now anticipates higher earnings, with estimates ranging from $13.75 to $14.25 per share. Similarly, adjusted earnings from continuing operations are expected to be between $14.75 and $15.25 per share, compared to the previous estimate of $13.00 to $13.50 per share.
Sales Growth and Cash Flow Outlook
Hubbell continues to maintain its guidance for full-year sales growth, expecting a range of 8% to 10%. Moreover, analysts at FactSet report that the company’s projected 2023 free cash flow is expected to exceed $700 million, surpassing market expectations.
Commitment to Long-Term Success
Chief Executive Gerben Bakker expressed confidence in Hubbell’s ability to deliver on its improved outlook, citing ongoing efforts in price optimization, cost management, and productivity enhancement. Bakker further emphasized the company’s commitment to meeting long-term customer needs while concurrently delivering attractive returns to shareholders. To this end, Hubbell plans to accelerate investment levels during the latter half of 2023.
