Latest news with #FortuneBrands
Yahoo
01-08-2025
- Business
- Yahoo
Fortune Brands's (NYSE:FBIN) Q2 Earnings Results: Revenue In Line With Expectations
Home and security products company Fortune Brands (NYSE:FBIN) met Wall Street's revenue expectations in Q2 CY2025, but sales fell by 3% year on year to $1.2 billion. Its GAAP profit of $0.83 per share was 13% below analysts' consensus estimates. Is now the time to buy Fortune Brands? Find out in our full research report. Fortune Brands (FBIN) Q2 CY2025 Highlights: Revenue: $1.2 billion vs analyst estimates of $1.2 billion (3% year-on-year decline, in line) EPS (GAAP): $0.83 vs analyst expectations of $0.95 (13% miss) Adjusted EBITDA: $250.3 million vs analyst estimates of $241.1 million (20.8% margin, 3.8% beat) EPS (GAAP) guidance for the full year is $3.85 at the midpoint, beating analyst estimates by 7.8% Operating Margin: 14.3%, down from 16.1% in the same quarter last year Free Cash Flow Margin: 19.8%, up from 18% in the same quarter last year Organic Revenue fell 1% year on year (-2.1% in the same quarter last year) Market Capitalization: $6.56 billion Company Overview Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products. Revenue Growth A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, Fortune Brands's sales grew at a tepid 5.9% compounded annual growth rate over the last five years. This was below our standard for the industrials sector and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Fortune Brands's recent performance shows its demand has slowed as its revenue was flat over the last two years. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Fortune Brands's organic revenue averaged 3.5% year-on-year declines. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, Fortune Brands reported a rather uninspiring 3% year-on-year revenue decline to $1.2 billion of revenue, in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months. Although this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Fortune Brands has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.9%. Analyzing the trend in its profitability, Fortune Brands's operating margin decreased by 9.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Fortune Brands generated an operating margin profit margin of 14.3%, down 1.8 percentage points year on year. Conversely, its gross margin actually rose, so we can assume its recent inefficiencies were driven by increased operating expenses like marketing, R&D, and administrative overhead. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Fortune Brands's flat EPS over the last five years was below its 5.9% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. Diving into the nuances of Fortune Brands's earnings can give us a better understanding of its performance. As we mentioned earlier, Fortune Brands's operating margin declined by 9.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Fortune Brands, its two-year annual EPS declines of 9.5% show its recent history was to blame for its underperformance over the last five years. These results were bad no matter how you slice the data. In Q2, Fortune Brands reported EPS at $0.83, down from $1.06 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects Fortune Brands's full-year EPS of $3.18 to grow 24.1%. Key Takeaways from Fortune Brands's Q2 Results We were impressed by Fortune Brands's optimistic full-year EPS guidance, which blew past analysts' expectations. We were also glad its organic revenue and EBITDA outperformed Wall Street's estimates. On the other hand, its EPS missed. Still, we think this was a decent quarter with some key areas of upside. The stock remained flat at $54.54 immediately following the results. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
30-07-2025
- Business
- Yahoo
Earnings To Watch: Fortune Brands (FBIN) Reports Q2 Results Tomorrow
Home and security products company Fortune Brands (NYSE:FBIN) will be reporting results this Thursday afternoon. Here's what to look for. Fortune Brands missed analysts' revenue expectations by 2.8% last quarter, reporting revenues of $1.03 billion, down 6.9% year on year. It was a softer quarter for the company, with a miss of analysts' organic revenue estimates and a slight miss of analysts' EBITDA estimates. 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 3.4% year on year to $1.20 billion, a reversal from the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.97 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 six times over the last two years. Looking at Fortune Brands's peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 5.7%, beating analysts' expectations by 5.3%, and Lennox reported revenues up 3.4%, topping estimates by 2.5%. Simpson traded up 10.7% following the results while Lennox was also up 7.2%. Read our full analysis of Simpson's results here and Lennox's results here. There has been positive sentiment among investors in the building products segment, with share prices up 5.5% on average over the last month. Fortune Brands is up 8.5% during the same time and is heading into earnings with an average analyst price target of $64.88 (compared to the current share price of $55.87). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Globe and Mail
17-07-2025
- Business
- Globe and Mail
Fortune Brands Sets Date for Second Quarter Earnings Announcement and Investor Conference Call
Fortune Brands Innovations, Inc. (NYSE: FBIN or 'Fortune Brands' or the 'Company'), an industry-leading home, security and digital products company whose purpose is to elevate every life by transforming spaces into havens, will release second quarter 2025 financial results after the market close on Thursday, July 31, 2025. At 5:00 p.m. ET, Chief Executive Officer Nicholas Fink, Chief Financial Officer Jon Baksht, and Vice President of Finance and Investor Relations Curt Worthington, will host a conference call to discuss second quarter 2025 results. A live internet audio webcast of the conference call will be available on the Fortune Brands website at It is recommended that listeners log on at least 10 minutes prior to the start of the call. A recorded replay of the call will be made available on the Company's website shortly after the call has ended. About Fortune Brands Innovations Fortune Brands Innovations, Inc. is an industry-leading home, security and digital products company whose purpose is to elevate every life by transforming spaces into havens. The Company is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company's portfolio of brands includes Moen, House of Rohl, Aqualisa, SpringWell, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe and Yale residential. Fortune Brands is headquartered in Deerfield, Illinois and trades on the NYSE as FBIN. To learn more, visit
Yahoo
24-06-2025
- Business
- Yahoo
Q1 Rundown: Masco (NYSE:MAS) Vs Other Home Construction Materials Stocks
As the Q1 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the home construction materials industry, including Masco (NYSE:MAS) and its peers. Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies. The 12 home construction materials stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts' consensus estimates. While some home construction materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results. Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets. Masco reported revenues of $1.80 billion, down 6.5% year on year. This print fell short of analysts' expectations by 2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts' adjusted operating income estimates. 'During the first quarter, we delivered solid adjusted operating profit margin of 16.0 percent and adjusted earnings per share of $0.87, and we returned $196 million to shareholders through dividends and share repurchases,' said Masco President and CEO, Keith Allman. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $61.79. Read our full report on Masco here, it's free. Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products. Simpson reported revenues of $538.9 million, up 1.6% year on year, outperforming analysts' expectations by 2%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' EPS estimates. The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $157.80. Is now the time to buy Simpson? Access our full analysis of the earnings results here, it's free. Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products. Fortune Brands reported revenues of $1.03 billion, down 6.9% year on year, falling short of analysts' expectations by 2.8%. It was a softer quarter as it posted a miss of analysts' organic revenue estimates and a slight miss of analysts' EBITDA estimates. As expected, the stock is down 2.4% since the results and currently trades at $51.44. Read our full analysis of Fortune Brands's results here. Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE:JELD) manufactures doors, windows, and other related building products. JELD-WEN reported revenues of $776 million, down 19.1% year on year. This number surpassed analysts' expectations by 0.8%. It was an exceptional quarter as it also recorded a solid beat of analysts' organic revenue estimates and an impressive beat of analysts' adjusted operating income estimates. JELD-WEN had the slowest revenue growth among its peers. The stock is down 30.2% since reporting and currently trades at $3.91. Read our full, actionable report on JELD-WEN here, it's free. Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products. Griffon reported revenues of $611.7 million, down 9.1% year on year. This result missed analysts' expectations by 1%. Taking a step back, it was still a strong quarter as it put up an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' EPS estimates. The stock is up 4.4% since reporting and currently trades at $70.73. Read our full, actionable report on Griffon here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
05-06-2025
- Business
- Yahoo
A Look Back at Home Construction Materials Stocks' Q1 Earnings: Fortune Brands (NYSE:FBIN) Vs The Rest Of The Pack
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how home construction materials stocks fared in Q1, starting with Fortune Brands (NYSE:FBIN). Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies. The 11 home construction materials stocks we track reported a mixed Q1. As a group, revenues were in line with analysts' consensus estimates. While some home construction materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results. Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products. Fortune Brands reported revenues of $1.03 billion, down 6.9% year on year. This print fell short of analysts' expectations by 2.8%. Overall, it was a softer quarter for the company with a miss of analysts' organic revenue estimates and a slight miss of analysts' EBITDA estimates. The stock is down 3.2% since reporting and currently trades at $51.03. Read our full report on Fortune Brands here, it's free. Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products. Simpson reported revenues of $538.9 million, up 1.6% year on year, outperforming analysts' expectations by 2%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' EPS estimates. The market seems content with the results as the stock is up 3.6% since reporting. It currently trades at $159.01. Is now the time to buy Simpson? Access our full analysis of the earnings results here, it's free. Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets. Masco reported revenues of $1.80 billion, down 6.5% year on year, falling short of analysts' expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. Interestingly, the stock is up 3.3% since the results and currently trades at $63.36. Read our full analysis of Masco's results here. Starting as a small millwork shop, American Woodmark (NASDAQ:AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation. American Woodmark reported revenues of $400.4 million, down 11.7% year on year. This number came in 6.6% below analysts' expectations. Overall, it was a softer quarter as it also logged full-year EBITDA guidance missing analysts' expectations. American Woodmark had the weakest performance against analyst estimates among its peers. The stock is down 1.3% since reporting and currently trades at $55.84. Read our full, actionable report on American Woodmark here, it's free. Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products. Griffon reported revenues of $611.7 million, down 9.1% year on year. This result missed analysts' expectations by 1%. Aside from that, it was a strong quarter as it recorded a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' EPS estimates. The stock is up 2.5% since reporting and currently trades at $69.43. Read our full, actionable report on Griffon here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
