Home and security products company Fortune Brands (NYSE: FBIN) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Fortune Brands missed analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $1.10 billion, down 4.9% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is Fortune Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Fortune Brands’s revenue to decline 4.2% year on year to $1.06 billion, a reversal from the 6.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Fortune Brands has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Fortune Brands’s peers in the home construction materials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 2%, and Hayward reported revenues up 7.7%, topping estimates by 7.1%. Simpson’s stock price was unchanged after the resultswhile Hayward was up 5.3%.
Read our full analysis of Simpson’s results here and Hayward’s results here.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 13% on average over the last month. Fortune Brands is up 7.6% during the same time and is heading into earnings with an average analyst price target of $72.66 (compared to the current share price of $54.81).
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