Fortune Brands (FBIN) Q3 Earnings: What To Expect

Home and security products company Fortune Brands (NYSE:FBIN) will be announcing earnings results tomorrow after market hours. Here’s what to expect.

Fortune Brands missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $1.24 billion, up 6.6% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings and organic revenue estimates.

Is Fortune Brands a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Fortune Brands’s revenue to decline 1.6% year on year to $1.24 billion, a reversal from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.14 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 home construction materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Trex’s revenues decreased 23.1% year on year, beating analysts’ expectations by 3.7%, and JELD-WEN reported a revenue decline of 13.2%, falling short of estimates by 5.6%. Trex’s stock price was unchanged following the results.

Read our full analysis of Trex’s results here and JELD-WEN’s results here.

Investors in the home construction materials segment have had steady hands going into earnings, with share prices flat over the last month. Fortune Brands is down 3% during the same time and is heading into earnings with an average analyst price target of $89.56 (compared to the current share price of $84.12).

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