Home security company Fortune Brands' Q2 sales fall less than expected
Overview
Fortune Brands Q2 2025 sales fall 3% to $1.2 bln, beating analyst expectations
Adjusted EPS for Q2 2025 declines 14% but beats analyst estimates
Company updates full-year guidance, aiming to offset tariff impacts
Outlook
Company expects 2025 EPS before charges/gains of $3.75 to $3.95
Fortune Brands sees 2025 net sales between -2% and flat
Company projects 2025 operating margin before charges/gains of 16.0% to 17.0%
Fortune Brands anticipates 2025 free cash flow of $500 mln to $520 mln
Result Drivers
STRATEGIC INITIATIVES - Co attributes performance to strategic initiatives and strong brand momentum, per CEO Nicholas Fink
TARIFF MANAGEMENT - Co remains on track to offset anticipated 2025 tariff impacts, leveraging Fortune Brands Advantage capabilities
SEGMENT PERFORMANCE - Water Innovations segment improved operating margins despite slight sales decline, while Outdoors and Security segments faced declines
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.20 bln | $1.20 bln (16 Analysts) |
Q2 Adjusted EPS | Beat | $1 | $0.97 (16 Analysts) |
Q2 EPS |
| $0.83 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy."
Wall Street's median 12-month price target for Fortune Brands Innovations Inc is $64.00, about 14.9% above its July 30 closing price of $54.46
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nBw2hfBTxa
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