Free Research Report as Fortune Brands' Quarterly Sales Climbed 6% and Adjusted EPS Advanced 12.7%
LONDON, UK / ACCESSWIRE / February 22, 2018 / Active-Investors.com has just released a free earnings report on Fortune Brands Home & Security, Inc. (NYSE: FBHS) ("Fortune Brands"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FBHS. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 01, 2018. The home products maker, like faucets, cabinets, windows, and doors topped earnings expectations, while sales were in-line with market estimates. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Fortune Brands Home & Security most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the fourth quarter of FY17, Fortune Brands' sales were $1.38 billion, reflecting an increase of 6% over $1.30 billion in Q4 2016. The Company's revenue numbers met analysts' estimates $1.38 billion.
During Q4 2017, Fortune Brands' operating income was $163.0 million compared to $166.4 million in Q4 2016. The Company's adjusted operating income was $186.6 million compared to $172.8 million in the year earlier same quarter, up 8% on a y-o-y basis.
Fortune Brands' net income was $128.0 million, or $0.83 per share, for Q4 2017 compared to $104.4 million, or $0.67 per share, in Q4 2016. The Company's adjusted earnings per share (EPS) totaled $0.80, up 12.7% versus $0.71 in the prior year's comparable quarter, and were ahead of Wall Street's estimates of $0.79.
For the full year FY17, Fortune Brands' sales jumped 6% to $5.28 billion compared to $4.98 billion in FY16. The Company's net income totaled $475.4 million, or $3.05 per share, for FY17 compared to $412.4 million, or $2.61 per share, in FY16. The Company's adjusted EPS advanced 12% to $3.08 in FY17 versus $2.75 in FY16.
Segment Results
During Q4 2017, Fortune Brands' Plumbing segment's sales increased 10% to $469.3 million on a y-o-y basis, driven by strong point-of-sale performance across channels, and share gains in China. The segment's operating income grew 11% to $92.8 million on a y-o-y basis.
For Q4 2017, Fortune Brands' Cabinet segment's sales grew 4% to $625.9 million on a y-o-y basis, led by low-double digit growth of in-stock cabinets and vanities, and high-single digit growth in builder direct category. The segment's operating income dropped 3% to $61.8 million in the reported quarter.
Fortune Brands' Door segment's reported sales of $128.7 million in Q4 2017, up 6% on a y-o-y basis, driven by growth in both the wholesale and retail channels, while its operating income was $18.7 million, up 18% versus the year ago comparable period.
During Q4 2017, Fortune Brands' Security segment's sales advanced 4% to $158.6 million on a y-o-y basis, attributed to strong US retail, safety, and international sales. The segment's operating income totaled $16.0 million for the reported quarter, down 27% on a y-o-y basis.
Cash Matters
As of December 31, 2017, Fortune Brands' cash totaled $323 million and debt was $1.5 billion, resulting in net debt to EBITDA of 1.4 times. Additionally, the Company's free cash flow was $464 million. During FY17, the Company repurchased $215 million of its shares, spent approximately $140 million on two plumbing acquisitions, and increased its quarterly dividend for the 5th consecutive year.
Annual Outlook
Fortune Brands' annual outlook for FY18 is based on a US home products market growth assumption of 5% to 7%, and an assumption of 5% to 6% growth for the total global market. The Company expects sales growth in the range of 6% to 7% for FY18.
Fortune Brands is estimating adjusted EPS to be in the range of $3.54 to $3.66, the midpoint of which is 17% on a y-o-y basis. The Company is estimating effective tax rate to be between 24% and 26% in FY18.
Stock Performance Snapshot
February 21, 2018 - At Wednesday's closing bell, Fortune Brands Home & Security's stock marginally dropped 0.55%, ending the trading session at $63.48.
Volume traded for the day: 1.81 million shares, which was above the 3-month average volume of 1.31 million shares.
Stock performance in the previous six-month period – up 1.05%; and past twelve-month period – up 10.63%
After yesterday's close, Fortune Brands Home & Security's market cap was at $9.50 billion.
Price to Earnings (P/E) ratio was at 20.81.
The stock has a dividend yield of 1.26%.
The stock is part of the Consumer Goods sector, categorized under the Home Furnishings & Fixtures industry.
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