Key Insights Ahead of Fortune Brands's Earnings Release
What to Anticipate from Fortune Brands's Earnings
Fortune Brands (FBIN) is gearing up to release its latest quarterly earnings report soon. Investors are keen to learn if the company can deliver on expectations and possibly exceed forecasts.
Current analyst predictions suggest that Fortune Brands will announce an earnings per share (EPS) of $0.97. Meeting or surpassing this figure is crucial for gaining investor confidence.
What many investors are focusing on is not just whether the company beats or misses earnings targets, but also the guidance for future growth. This forward-looking information can significantly affect stock prices.
Analysis of Previous Earnings
In the last quarter, Fortune Brands's EPS fell short by $0.00, resulting in an 8.79% decline in share price the following day—a reminder that past performance can create ripples in investor sentiment.
To better understand the trend, here's a brief recap of the company’s recent earnings and the subsequent stock price changes:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.66 | 1.05 | 1.14 | 1.12 |
| EPS Actual | 0.66 | 0.98 | 1.16 | 1.16 |
| Price Change % | -9.0% | -1.0% | -6.0% | 9.0% |
Current Stock Performance
As of the market closing on July 29, shares of Fortune Brands traded at $55.87, reflecting a downward trend of 30.03% over the past year. Long-term investors may be feeling uncertain as these results could indicate deeper issues within the company.
Market Sentiment and Analyst Ratings
It is essential for investors to grasp the general sentiment surrounding Fortune Brands among market analysts. Currently, the consensus rating is Neutral, based on five analyst evaluations, with an average one-year price target of $65.2, which implies a potential upside of 16.7% for investors.
Comparative Analysis with Industry Peers
This section compares Fortune Brands to significant competitors, namely AAON and Trex Co, illuminating their market positions and prospects:
- AAON has a Buy rating with a price target suggesting a 70.04% upside.
- Trex Co holds a Neutral outlook with a projected upside of 28.15%.
Summarizing the Peer Metrics
The following table represents an overview of key metrics for Fortune Brands and its peers:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Fortune Brands | Neutral | -6.89% | $454.70M | 2.17% |
| AAON | Buy | 22.87% | $86.36M | 3.57% |
| Trex Co | Neutral | -9.00% | $137.73M | 6.87% |
Overall, Fortune Brands finds itself in the middle ground in terms of revenue growth, but it struggles with gross profit margins while leading in the return on equity category.
About Fortune Brands
Fortune Brands Innovations stands as a premier entity in the home and security product market, showcasing three key segments: the water segment featuring the Moen brand, the outdoors segment offering entry doors from the Therma-Tru brand, and the security segment represented by established names such as Master Lock and Yale.
Financial Performance Insights
Turning to the financial metrics of the company reveals challenges ahead:
- Marginal Market Cap: Fortune Brands's market capitalization is somewhat below the industry average, indicating a smaller operational scale in comparison to leaders in the sector.
- Challenges in Revenue Growth: Recent financial records highlight a troubling trail in revenue growth, indicating a negative trajectory as of March 31, 2025.
- Profitability Concerns: With a net margin below industry standards, Fortune Brands may face adversity in managing costs and maintaining healthy profitability margins.
Moreover, a debt-to-equity ratio of 1.33 points to difficulties in debt management, inviting closer scrutiny from investors looking for financial stability.
Frequently Asked Questions
What is the expected EPS for Fortune Brands's upcoming report?
The expected EPS is $0.97.
How did Fortune Brands perform in the previous quarter?
In the last quarter, the EPS was $0.66, which missed the estimate, leading to a decline in stock price.
What is the consensus rating for Fortune Brands?
The consensus rating is Neutral among analysts.
What are the revenue challenges faced by Fortune Brands?
The revenue growth rate is facing a decline of approximately -6.89% recently.
How does Fortune Brands compare to its peers?
Fortune Brands ranks in the middle for revenue growth but struggles with profitability metrics relative to peers.
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