Research Desk Line-up: Energy Focus Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Fortune Brands Home & Security, Inc. (NYSE: FBHS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FBHS, following the Company's release of its financial results on October 25, 2017, for the third quarter fiscal 2017. The home and security products Company's adjusted EPS surpassed analysts' expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Home Furnishings & Fixtures industry. Pro-TD has currently selected Energy Focus, Inc. (NASDAQ: EFOI) for due-diligence and potential coverage as the Company announced on November 08, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Energy Focus when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FBHS; also brushing on EFOI. With the links below you can directly download the report of your stock of interest free of charge at:
For three months ended September 30, 2017, Fortune Brands' net revenues increased 5% to $1.35 billion from $1.28 billion in Q3 FY16. Net revenue was below analysts' expectations of $1.38 billion.
During Q3 FY17, the Company's gross profit increased 6.1% to $507.0 million from $478.0 million in the same period last year. For the reported quarter, the Company's gross margin increased 20 basis points to 37.6% of revenue from 37.4% of revenue in Q3 FY16.
During Q3 FY17, the Company's operating income increased 10% to $201.8 million from $183.1 million in the same period last year. For the reported quarter, the Company's operating margin increased 70 basis points to 15% of revenue from 14.3% of revenue in the third quarter of last year. For the reported quarter, the Company's adjusted operating margin increased 10 basis points to 14.9% of revenue from 14.8% of revenue in Q3 FY16.
For the reported quarter, Fortune Brands' net income increased 6.3% to $129.6 million on a y-o-y basis from $121.9 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 7.8% to $0.83 on a y-o-y basis from $0.77 in the same period last year. For the reported quarter, Fortune Brands' adjusted net income increased 2.1% to $129.0 million on a y-o-y basis from $126.4 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS increased 3.8% to $0.83 on a y-o-y basis from $0.80 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $0.82.
Fortune Brands' Segment Details
Cabinets - During Q3 FY17, the Cabinets segment's net revenue increased 2% to $614.2 million from $602.1 million in the same period last year. The increase was due to growth in in-stock cabinets and vanities. For the reported quarter, the segment's operating income decreased 7% to $69.7 million from $74.8 million in Q3 FY16.
Plumbing - During Q3 FY17, the Plumbing segment's net revenue increased 12% to $438.3 million from $391.1 million in the same period last year. The increase was due to high single-digit growth in organic growth and contributions from acquired assets. For the reported quarter, the segment's operating income increased 16% to $97.3 million from $84.0 million in Q3 FY16. For the reported quarter, the segment's adjusted operating income increased 15% to $97.4 million from $84.9 million in the third quarter of 2016.
Doors - During Q3 FY17, the Doors segment's net revenue increased 7% to $138.5 million from $129.2 million in the same period last year. The increase was due to new construction activity in the wholesale channel. For the reported quarter, the segment's operating income increased 13% to $25.1 million from $22.3 million in the third quarter of 2016.
Security - During Q3 FY17, the Security segment's net revenue increased 1% to $157.6 million from $156.6 million in the same period last year. The revenue in the core business increased 5% due to strong international and safety sales, but increased 1% as reported due to timing of sales and the wind-down of select commercial product lines. For the reported quarter, the segment's operating income increased 21% to $27.7 million from $22.9 million in the third quarter of 2016. For the reported quarter, the segment's adjusted operating income increased 6% to $28.1 million from $26.6 million in the third quarter of 2016.
As on September 30, 2017, Fortune Brands' cash and cash equivalents increased 10.2% to $277.1 million from $251.5 million on December 31, 2016. For the reported quarter, the Company's long-term debt increased 2.2% to $1.46 billion from $1.43 billion in Q4 FY16.
During FY17, the Company's YTD cash provided by operating activities decreased 7.4% to $352.6 million from $380.6 million in the same period last year. The Company's YTD free cash flow decreased 6.1% to $283.1 million in FY17 from $301.6 million in the same period last year.
For FY17, Fortune Brands expects revenue growth to be in the range of 6% to 7% and adjusted diluted EPS to be in the range of $3.05 to $3.10. The Company estimates free cash flow to be $450 million for fiscal 2017.
At the closing bell, on Wednesday, November 15, 2017, Fortune Brands Home & Security's stock was slightly down 0.97%, ending the trading session at $64.06. A total volume of 586.48 thousand shares have exchanged hands. The Company's stock price surged 2.19% in the last three months, 1.94% in the past six months, and 12.17% in the previous twelve months. Moreover, the stock rallied 19.83% since the start of the year. The stock is trading at a PE ratio of 22.19 and has a dividend yield of 1.12%. The stock currently has a market cap of $9.73 billion.
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