Home and security products company Fortune Brands (NYSE:FBIN) will be reporting results this Thursday after market hours. Here’s what investors should know.
Fortune Brands missed analysts’ revenue expectations last quarter, reporting revenues of $1.08 billion, down 2.4% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ revenue 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, the market is expecting Fortune Brands’s revenue to decline 2% year on year, improving from the 6.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple 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 9.1%, beating analysts’ expectations by 6.4%, and Masco reported revenues up 6.5%, topping estimates by 4.6%. Simpson traded up 2.5% following the results while Masco was also up 12.9%.
Read our full analysis of Simpson’s results here and Masco’s results here.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 9.9% on average over the last month. Fortune Brands is up 1.2% during the same time and is heading into earnings with an average analyst price target of $50.29 (compared to the current share price of $38.20).
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