Fortune Brands (FBIN) Reports Q2 Results Tomorrow

Home and security products company Fortune Brands (NYSE:FBIN) will be reporting results this Thursday afternoon. Here’s what to look for.

Fortune Brands missed analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $1.03 billion, down 6.9% year on year. It was a softer quarter for the company, with a miss of analysts’ organic revenue estimates and a slight miss of analysts’ EBITDA 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 3.4% year on year to $1.20 billion, a reversal from the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.97 per share.

Analysts covering the company have generally 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 six 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 delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 5.3%, and Lennox reported revenues up 3.4%, topping estimates by 2.5%. Simpson traded up 10.7% following the results while Lennox was also up 7.2%.

Read our full analysis of Simpson’s results here and Lennox’s results here.

There has been positive sentiment among investors in the building products segment, with share prices up 5.5% on average over the last month. Fortune Brands is up 8.5% during the same time and is heading into earnings with an average analyst price target of $64.88 (compared to the current share price of $55.87).

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