Hubbell Inc. (NYSE:HUBB)

The financial data presents the reported and adjusted net income attributable to the company over a five-year period from 2018 to 2022.

Reported Net Income

The reported net income exhibits a fluctuating trend. It increased from $360.2 million in 2018 to $400.9 million in 2019, followed by a decline to $351.2 million in 2020. Subsequently, it rose again to $399.5 million in 2021 and significantly increased to $545.9 million in 2022. This pattern indicates resilience and substantial growth in the most recent year.

Adjusted Net Income

The adjusted net income demonstrates a similar trajectory to the reported figures, confirming the overall trends observed are consistent even after adjustments. It increased from $358.8 million in 2018 to $403.5 million in 2019, decreased slightly to $351.6 million in 2020, recovered to $399.1 million in 2021, and then heightened sharply to $544.5 million in 2022. The close alignment between reported and adjusted figures suggests that adjustments have a minimal impact on the overall profitability trend.

General Observations

Both reported and adjusted net income reflect a dip during 2020, likely influenced by external factors impacting the business environment. The recovery in 2021 and pronounced increase in 2022 may indicate improved operational performance, cost controls, or favorable market conditions contributing to higher profitability. The minimal difference between reported and adjusted net income throughout the period indicates that non-recurring or special items have had limited effect on core earnings.

Net Profit Margin

The net profit margin shows a generally upward trend from 2018 to 2022. Both the reported and adjusted margins increased from approximately 8.0% in 2018 to around 11.0% in 2022. There was a slight dip in 2020, but the margin rebounded in the subsequent years, with 2022 marking the highest margin in the period analyzed. This indicates improving profitability over time.

Return on Equity (ROE)

ROE exhibited some volatility during the period. Both reported and adjusted ROE peaked near 20.5% in 2019, dropped significantly in 2020 to about 17%, and then increased to over 23% by 2022. The increase in 2022 suggests enhanced efficiency in generating returns from shareholders' equity, outperforming earlier years despite the 2020 dip.

Return on Assets (ROA)

ROA followed a pattern similar to ROE, starting around 7.4% in 2018, rising to over 8% in 2019, falling back to about 6.9% in 2020, and then steadily advancing to approximately 10.1% in 2022. The improvement in ROA reflects better utilization of assets to generate profit, with 2022 showing a notable increase compared to previous years.

Comparison of Reported vs. Adjusted Data

The reported and adjusted figures across all metrics are closely aligned, with minimal differences. This consistency indicates that adjustments have a limited effect on the overall profitability and return metrics, supporting the reliability of reported results.

The financial data reveals notable trends in income and profitability metrics over the five-year period ending December 31, 2022.

Net Income (Reported and Adjusted)

Reported net income attributable to the company experienced growth from 2018 to 2019, increasing from approximately $360.2 million to $400.9 million. This upward trajectory was interrupted in 2020, with income falling to about $351.2 million. Recovery and growth occurred in 2021, reaching nearly $399.5 million, and this pattern continued strongly in 2022, culminating in the highest observed income of approximately $545.9 million. Adjusted net income closely mirrors the reported figures, with negligible differences, indicating that adjustments had little impact on the overall income trend.

Net Profit Margin (Reported and Adjusted)

Reported net profit margin showed improvement over the observed period, starting at 8.04% in 2018 and rising to 8.73% in 2019. A slight decline to 8.39% occurred in 2020, followed by a rebound to 9.53% in 2021 and a significant increase to 11.03% in 2022. The adjusted net profit margin exhibits a consistent pattern, slightly higher than the reported margin in earlier years but aligning closely thereafter. The increase in profit margins suggests enhanced profitability and operational efficiency at the company.

In summary, both net income and profit margin demonstrate resilience and improvement following a dip in 2020, with 2022 marking a peak in profitability levels within the reviewed timeframe. The similarity between reported and adjusted data implies stability in earnings quality and limited impact from one-time adjustments or exceptional items.

Net Income Trends

The reported net income attributable to the company experienced fluctuations over the five-year period. Starting at $360.2 million in 2018, it increased to $400.9 million in 2019, followed by a decline to $351.2 million in 2020. Subsequently, net income rose again to $399.5 million in 2021 and saw a significant increase to $545.9 million in 2022. The adjusted net income closely mirrors the reported figures, indicating consistency between reported and adjusted results, with only minor differences each year.

Return on Equity (ROE) Patterns

Both reported and adjusted ROE values show similar trends over the period. Initially, reported ROE was strong at 20.23% in 2018, slightly increasing to 20.59% in 2019. In 2020, ROE dropped noticeably to 16.97%, reflecting the dip in net income. Thereafter, it recovered moderately to 17.92% in 2021, and then significantly increased to 23.12% in 2022. Adjusted ROE follows an almost identical pattern, confirming that adjustments had minimal impact on equity profitability metrics.

Overall Observations

The data reveals a general upward trend in profitability and return on equity from 2020 onwards, following a dip in 2020, which may correspond to broader market or operational challenges during that year. The substantial increase in both net income and ROE in 2022 indicates improved operational efficiency or favorable business conditions. The close alignment between reported and adjusted figures suggests transparency and consistency in financial reporting.

Net Income Trends

The net income attributable to Hubbell Incorporated demonstrated fluctuations over the five-year period. The reported net income increased from $360.2 million in 2018 to a peak of approximately $400.9 million in 2019. It then declined to $351.2 million in 2020, possibly reflecting challenges or market conditions faced during that year. Subsequently, the net income rebounded to $399.5 million in 2021, followed by a significant increase to $545.9 million in 2022, indicating a strong recovery or enhanced profitability.

The adjusted net income shows a similar pattern, closely aligning with the reported figures, suggesting that adjustments made were not materially changing the income values. Adjusted net income rose from $358.8 million in 2018 to $403.5 million in 2019, fell slightly to $351.6 million in 2020, then increased again to $399.1 million in 2021, and finally surged to $544.5 million in 2022.

Return on Assets (ROA) Trends

The reported ROA metric indicates an overall positive trend in asset efficiency. The ROA rose from 7.39% in 2018 to 8.18% in 2019, then decreased to 6.91% in 2020, reflecting some loss of asset efficiency, before recovering to 7.56% in 2021. There was a substantial improvement in 2022, with ROA reaching 10.1%, evidencing enhanced utilization of assets to generate earnings.

The adjusted ROA values follow the same trend closely, moving from 7.36% in 2018 to 8.23% in 2019, dipping to 6.91% in 2020, then climbing back to 7.56% in 2021, and peaking at 10.08% in 2022. This close alignment between reported and adjusted ROA again indicates that adjustments had minimal impact on core asset performance measures.

Overall Analysis

Across the reviewed periods, both net income and ROA demonstrate resilience with evident volatility in 2020, likely linked to external factors affecting performance that year. The recovery and significant growth in 2022 suggest strengthened operational efficiency and profitability. The minimal divergence between reported and adjusted figures implies consistent reporting and limited impact from extraordinary items or adjustments.