Stock Story -
Home and security products company Fortune Brands (NYSE:FBIN) will be reporting earnings tomorrow after market hours. Here's what to expect.
Fortune Brands beat analysts' revenue expectations by 2.7% last quarter, reporting revenues of $1.11 billion, up 6.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
Is Fortune Brands a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Fortune Brands's revenue to grow 10% year on year to $1.28 billion, a reversal from the 7.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 per share.
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 five 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 posted flat year-on-year revenue, missing analysts' expectations by 1.3%, and Apogee reported a revenue decline of 8.3%, in line with consensus estimates. Simpson's stock price was unchanged after the results, while Apogee was up 6.6%.
Read the full analysis of Simpson's and Apogee's results on StockStory.
There has been positive sentiment among investors in the building products segment, with share prices up 8.3% on average over the last month. Fortune Brands is up 11.6% during the same time and is heading into earnings with an average analyst price target of $82.6 (compared to the current share price of $71.32).