Hubbell Inc. (NYSE: HUBB) reported Q4 EPS of $1.72, $0.02 better than the analyst estimate of $1.70. Revenue for the quarter came in at $1.14 billion versus the consensus estimate of $1.13 billion.

• Q4 net sales up 25% (+5% organic, +20% acquisitions)
• Q4 adjusted diluted EPS of $1.72(1)
  • Adjusted excludes Aclara acquisition-related costs ($0.12)
  • Includes legacy intangible amortization ($0.12)
• Full year 2018 free cash flow of $421 million, 117% of net income (3)
• FY18 diluted EPS $6.54; adjusted diluted EPS of $7.29(1)
  • Includes restructuring & related costs ($0.22)
  • Includes legacy intangible amortization ($0.48)
• Adjusted excludes Aclara intangible amortization ($0.57) and acquisition costs ($0.18)
• FY19 diluted EPS expected range of $6.80 to $7.20; adjusted diluted EPS of $7.80 to $8.20(1)
  • Includes restructuring & related costs (~$0.40), primarily footprint consolidation
  • Adjusted excludes ALL intangible amortization (~$1.00)

"Continued strength in end markets and improved traction on price realization drove another strong quarter of 5% organic growth," said David G. Nord, Chairman, President and Chief Executive Officer. "All major end markets once again expanded and we saw notable strength in core industrial, outside-plant-telecommunications, and gas distribution. Lighting markets were stronger than initially anticipated, primarily driven by strength in Residential, while C&I saw modest volume growth and overall Lighting price was slightly positive. In addition, acquisitions contributed 20 points to sales growth. We are encouraged by the continued strength in demand for Aclara's products, with strong revenue performance in 2018 and a robust backlog and project pipeline.

"In both Electrical and Power segments, we are achieving continued traction on pricing initiatives, and price realization in the quarter increased on a sequential basis. While higher year over year material costs, including tariffs, were a headwind to our operating margins as expected, the gap between price recovery and these costs improved sequentially. Consistent with our initiative to drive savings and operational efficiencies, we accelerated cost actions into the fourth quarter to actively combat broader inflationary pressures." Mr. Nord continued, "The Aclara acquisition was again accretive in the quarter, although it continued to be unfavorable to Power segment margins, as expected."

Mr. Nord added, "Free cash flow performance was once again a highlight, with full year free cash flow of $421 million, up 41% versus 2017 and representing 117% conversion on reported net income.(3) The Company's ongoing focus on working capital is increasingly visible in better inventory management, while maintaining high levels of customer service and delivering higher volumes. We expect to continue driving improvements in this area in the future."

GUIDANCE:

Hubbell Inc. sees FY2019 EPS of $7.80-$8.20, versus the consensus of $7.78.

For earnings history and earnings-related data on Hubbell Inc. (HUBB) click here.