Home and security products company Fortune Brands (NYSE:FBIN) will be announcing earnings results this Thursday after market hours. Here’s what to look for.
Fortune Brands met analysts’ revenue expectations last quarter, reporting revenues of $1.20 billion, down 3% year on year. It was a strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Fortune Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Fortune Brands’s revenue to grow 2.1% year on year to $1.18 billion, a reversal from the 8.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.10 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 building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3.1%, and Zurn Elkay reported revenues up 11.1%, topping estimates by 3%. Simpson traded up 6.1% following the results.
Read our full analysis of Simpson’s results here and Zurn Elkay’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.1% on average over the last month. Fortune Brands is down 3.6% during the same time and is heading into earnings with an average analyst price target of $64.63 (compared to the current share price of $51.23).
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