Boston, MA 05/05/2014 (wallstreetpr) – Earnings, Fortune Brands Home & Security Inc (NYSE:FBHS) has a higher adjusted earnings per share but fell below the estimations.
Fortune earned a 4.2% higher earnings per share to $0.25 from the previous year. However, this adjusted earning was lower than the Zacks Consensus Estimate, which estimated that the company will earn $0.32. The adjusted net income for 1Q2014 was $42.7 million and was up by 3.6%.
On a GAAP Basis, Fortune’s earnings per share went up by 9.1% to reach $0.24. The net income increased to $40.8 million, which is an increase of 9% 4%.
Details
For the 1Q2014, net sales were up 8.6% to reach $966.2 million compared to the last year. However the Zacks Consensus Estimate was $993 million. If extreme winter conditions didn’t hamper the total sales, it could have seen a 13% increase in sales over the last year.
Look into the future
The revenue growth seen by Fortune Brands Home & Security Inc (NYSE:FBHS) is higher than the average for the industry, which is 3.7%. It also showed the significance earnings per share growth in 1Q2014 when compared to the same quarter last year. It has been showing positive earnings per share growth for the last two years and the trend is likely to continue. During FY 2013, Fortune earned $1.33 per share compared to $0.72 the previous year.
The gross profit margin against 36.06%, which is a strong number. The net profit margin is 5.82% and it is above the industry average.
The U.S. Home products market is expected to grow by 9 to 10% in FY 2014.Fortune Brands Home & Security Inc (NYSE:FBHS) has a forecast of 10 to 12% increase during this financial year. The projection for earnings per share is $1.90 to $1.99 for FY 2014. Fortune has recently made investments in creation of additional capacity in the plumbing and cabinetry segments.
