Latest news with #FortuneBrands
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
Fast Company
02-06-2025
- Business
- Fast Company
This company asked most corporate employees to relocate to Chicago. The majority declined
In January, Fortune Brands Innovations, whose portfolio includes home and security brands such as Moen and Master Lock, announced it was consolidating its regional U.S. offices into one state-of-the-art campus in Deerfield, Illinois. As part of that effort, they are requiring the majority of corporate employees to move to the Chicago suburb. When asked to relocate, most of these employees declined—but the company said it expected that, and in a conversation about the transition, CEO Nicholas Fink framed the changes ahead as a positive for the company. He added that while many opted out of relocation, the company still exceeded industry benchmarks for the number of people who said 'yes' to the move. 'To be candid, it's a big change for a lot of people,' says Fink, who declined to share more specific figures. 'There are people who are committed to their communities and their families and aren't interested in a move. . . . And then there are people who are very excited to be a part of this.' The company asked employees from eight sites across the U.S., as well as some remote employees, to relocate. It will eventually ask employees from a ninth site to relocate as well. The company's manufacturing facilities, distribution centers, and international sites, as well as its digital-focused San Francisco office, will remain open. The extended deadline for Fast Company's Brands That Matter Awards is this Friday, June 6, at 11:59 p.m. PT. Apply today.
Yahoo
22-05-2025
- Business
- Yahoo
Fortune Brands, Whirlpool, Align Technology, Tandem Diabetes, and STAAR Surgical Shares Plummet, What You Need To Know
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit. A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt. As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today. With lower interest rates (yields), investors can apply higher valuations to their stocks; when yields rise, that math works in reverse. Adding to the cautious mood were earnings results from retail giants Target and Lowe's, both of which reported weak earnings that missed expectations, pointing to a potential slowdown in consumer spending and further weighing on sentiment. Lastly, some influential voices such as Jamie Dimon (JPMorgan) and Steve Cohen (Point72) have made cautious comments about market, which can sometimes become self-fulfilling prophecies as investors increase their cautiousness and skittishness. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Home Construction Materials company Fortune Brands (NYSE:FBIN) fell 5.4%. Is now the time to buy Fortune Brands? Access our full analysis report here, it's free. Electrical Systems company Whirlpool (NYSE:WHR) fell 5.5%. Is now the time to buy Whirlpool? Access our full analysis report here, it's free. Dental Equipment & Technology company Align Technology (NASDAQ:ALGN) fell 5.4%. Is now the time to buy Align Technology? Access our full analysis report here, it's free. Healthcare Technology for Patients company Tandem Diabetes (NASDAQ:TNDM) fell 8.2%. Is now the time to buy Tandem Diabetes? Access our full analysis report here, it's free. Medical Devices & Supplies - Specialty company STAAR Surgical (NASDAQ:STAA) fell 5.4%. Is now the time to buy STAAR Surgical? Access our full analysis report here, it's free. Tandem Diabetes's shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Tandem Diabetes is down 39.5% since the beginning of the year, and at $21.70 per share, it is trading 59.4% below its 52-week high of $53.43 from May 2024. Investors who bought $1,000 worth of Tandem Diabetes's shares 5 years ago would now be looking at an investment worth $247.63. 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.
Yahoo
20-05-2025
- Business
- Yahoo
FBIN Q1 Earnings Call: Tariff Pressures and Demand Uncertainty Weigh on Results
Home and security products company Fortune Brands (NYSE:FBIN) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 6.9% year on year to $1.03 billion. Its non-GAAP profit of $0.66 per share was in line with analysts' consensus estimates. Is now the time to buy FBIN? Find out in our full research report (it's free). Revenue: $1.03 billion vs analyst estimates of $1.06 billion (6.9% year-on-year decline, 2.8% miss) Adjusted EPS: $0.66 vs analyst estimates of $0.66 (in line) Adjusted EBITDA: $179.6 million vs analyst estimates of $180.9 million (17.4% margin, 0.7% miss) Operating Margin: 9.4%, down from 14% in the same quarter last year Free Cash Flow was -$112.6 million compared to -$135.9 million in the same quarter last year Organic Revenue fell 6.8% year on year (-1.9% in the same quarter last year) Market Capitalization: $6.69 billion Fortune Brands' first quarter results were shaped by persistent demand softness and significant external pressures, particularly from new U.S. tariffs impacting its home and security product lines. Management highlighted that consumer uncertainty and inventory reductions, especially in the water segment, led to lower sales, while margin performance was supported by ongoing cost control and pricing actions. CEO Nicholas Fink noted, 'Our teams remain focused on our key priorities amidst a volatile environment and delivered margin results in line with our expectations while continuing to invest in a narrow set of long-term strategic initiatives.' For the outlook, Fortune Brands refrained from issuing detailed annual guidance, instead providing a framework reflecting various volume scenarios due to unpredictable consumer behavior. Management emphasized their confidence in mitigating the expected $200 million tariff impact this year and outlined a multi-pronged strategy leveraging supply chain shifts, cost-out activities, and pricing. CFO David Barry explained that while tariff mitigation is underway, the biggest unknown remains the pace of consumer demand recovery, and the company's guidance now incorporates both low and high single-digit volume decline scenarios. Management cited external headwinds and internal strategic actions as key factors shaping first quarter performance. The company's approach to tariffs, supply chain flexibility, and ongoing investment in digital products were central themes throughout the call. Tariff Mitigation Actions: Management outlined a strategy to offset $200 million in 2025 tariff costs, focusing on shifting supply chains out of China, executing cost reductions, and targeted price increases. About 60% of cost of goods sold now originates in the U.S., and management expects China exposure to be reduced to roughly 10% by year-end. Digital Business Momentum: The digital portfolio, including the Flo leak detection device and Yale smart locks, showed robust growth. The company added three new insurance partnerships for Flo, and sales of the device rose 180% year-over-year. Over 200,000 digital device activations occurred in Q1, and management reiterated confidence in reaching $300 million in digital sales for 2025. Headquarters Consolidation: The consolidation of U.S. office associates into a new headquarters in Deerfield, Illinois, is progressing ahead of plan, enabling greater operational efficiency and cost control. Management cited improved talent retention and recruitment as a result of this move. Brand and Product Refreshes: New marketing campaigns for Master Lock and SentrySafe, the rollout of Larson Perfect aisle, and updated Moen product lines were highlighted as initiatives supporting sales and brand strength. These product launches are expected to drive growth in later quarters. Competitive Supply Chain Position: Fortune Brands' North American manufacturing footprint was emphasized as a differentiator, particularly as competitors in security and outdoors rely more heavily on Chinese imports, which are now subject to higher tariffs. Management expects this advantage to help capture market share as the year progresses. Management's outlook for the remainder of the year centers on mitigating tariff impacts, executing cost controls, and capitalizing on competitive supply chain advantages, while consumer demand remains the largest source of uncertainty. Supply Chain Flexibility: The company's ongoing shift to a more North American–centric supply chain is expected to reduce exposure to tariffs and provide stability, particularly in the event of continued geopolitical disruptions. Strategic Pricing and Cost Control: Management intends to offset tariff-related costs with mid-single-digit price increases and continued cost-out initiatives, aiming to defend operating margins even if volumes decline. Digital and Product Innovation: Continued growth in digital products, including new insurance partnerships and subscription models, is expected to provide incremental sales and diversify revenue streams, helping to buffer against cyclical demand in core categories. Phil Ng (Jefferies): Asked how headquarters consolidation and management changes would improve agility. Management explained that the move gives them more control over hiring pace and flexibility to adjust costs as market conditions evolve. John Lovallo (UBS): Inquired about confidence in achieving digital sales targets and balancing digital initiatives with core business performance. Management expressed strong confidence in digital momentum and highlighted upcoming core business innovations. Trevor Allinson (Wolfe Research): Sought clarification on China supply chain exposure and whether the strategy would change if tariffs were reduced. Management stated the supply chain would remain flexible, with a continued emphasis on North American production. Susan McClary (Goldman Sachs): Asked about leveraging U.S. manufacturing to gain market share amid disruptions. Management identified opportunities in the outdoors and security segments, where competitors are more exposed to tariffs. Michael Rehaut (JPMorgan): Questioned the assumptions behind the pricing and volume guidance framework. Management detailed the interplay between price increases, cost mitigation, and expectations for volume declines across scenarios. Looking ahead, the StockStory team will monitor (1) the pace and success of tariff mitigation actions and supply chain adjustments, (2) the continued momentum in digital product sales and new partnerships, and (3) signs of demand stabilization or recovery in core segments like water and outdoors. Execution on headquarters consolidation and the impact of new product launches will also be important indicators of Fortune Brands' ability to navigate ongoing market uncertainty. Fortune Brands currently trades at a forward P/E ratio of 13×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Business Wire
14-05-2025
- Business
- Business Wire
Fortune Brands Elects Brendan M. Foley to Board of Directors
DEERFIELD, Ill.--(BUSINESS WIRE)--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, today announced it has elected Brendan M. Foley as a Class III member of the Board of Directors, effective July 1, 2025, for a term expiring at the Company's 2026 annual meeting of shareholders. Foley currently serves as Chairman, President and Chief Executive Officer of McCormick & Company, Inc. ('McCormick'). He was appointed President and CEO in September 2023 and as Chairman of McCormick's Board of Directors in January 2025. Prior to being named CEO in 2023, he was President and Chief Operating Officer, where he had global responsibility for the company's supply chain and commercial operations. Since joining McCormick in 2014, Foley has led its Global Consumer Business across the Americas and Asia, following senior leadership roles within McCormick's U.S. and North American divisions. Over the course of his career, he has gained extensive executive leadership experience in the consumer packaged goods and food industries, including McCormick, H.J. Heinz, and General Mills. 'We are pleased to welcome Brendan to our Board. As a current CEO of a large consumer products company, Brendan has valuable experience in quickly adapting and executing a business strategy in a dynamic market,' said Fortune Brands Chief Executive Officer Nicholas Fink. 'Additionally, his strong background in global consumer brand management, strategic transformation and operational leadership is a great fit for Fortune Brands. Brendan's focus on increasing innovation and his track record of driving growth will add significant value to our Board as we continue to execute our strategy and deliver long-term shareholder value.' Foley holds a B.S. in Marketing from Miami University. He serves on multiple industry and not-for-profit boards. The election of Foley to the Board represents the Board's ongoing commitment to Board refreshment and succession planning. 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
