NYSE$FBIN

Fortune Brands Innovations Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Delivered solid sales and strong margin results.

Fortune Brands Innovations reported a 7% increase in sales to $1.2 billion in Q2 2024. EPS increased by 33% to $1.06, and EPS before charges/gains increased by 8% to $1.16. The company updated its full-year 2024 guidance, reflecting a revised macro-economic outlook and strength in key businesses.

  • Q2 2024 sales were $1.2 billion, an increase of 7 percent versus Q2 2023.
  • Organic sales were $1.1 billion, a decrease of 3 percent versus Q2 2023
  • Q2 2024 earnings per share (EPS) were $1.06, an increase of 33 percent versus a year ago; EPS before charges / gains were $1.16, an increase of 8 percent versus Q2 2023
  • Company updates full-year 2024 guidance, reflecting a revised macro-economic outlook and strength in key businesses while maintaining prior mid-point of EPS before charges / gains range

Headline financials

Total Revenue

$1.24B

Previous: $1.16B+6.6%
EPS

$1.06

Previous: $1.07-0.9%
Operating Margin

16.1%

Previous: 13.1%+22.9%
Operating Margin Before Charges/Gains

17.4%

Previous: 17.0%+2.4%
Capital Expenditures

-$103M

Previous: -$112M+7.8%
Free Cash Flow

$30.5M

Previous: -$10.1M+402.0%
Net Income

$134M

Previous: $102M+31.1%
Operating Income

$199M

Previous: $153M+30.5%
Gross Profit

$541M

Previous: $468M+15.6%
Cash & Equivalents

$353M

Previous: $682M-48.3%
Total Assets

$6.67B

Previous: $6.87B-2.9%
Stock-Based Comp

$9.7M

Previous: $6.7M+44.8%

Revenue & EPS history

Fortune Brands · Revenue · Quarterly

$1.24B

Q2 2024+6.6%vs Q2 2023
Beat estimate in 3 of 13 quarters(23%)
ActualEstimate

Revenue by segment

Fortune Brands · $1.26B total across 3 segments · Q3 2023

  • Water
    $688M+8.3%
  • Outdoors
    $366M-34.6%
  • Security
    $207M-63.1%

Forward guidance

Fortune Brands is updating its full-year guidance to reflect expectations for continued out-performance driven by its core businesses, with particular strength in its Outdoors segment and its Moen North America business, and its accelerating digital sales, which are offset by weaker China sales. The company is narrowing the range around its prior EPS before charges / gains mid-point due to expected growth in its core and digital businesses and strong margin performance.

Tailwinds

  • U.S. SFNC 8% to 10%
  • Outdoors net sales 2% to 4%
  • Water Innovations operating margin before charges / gains Around 24%
  • Cash flow from operations Around $700 million
  • Cash conversion Around 100%

Headwinds

  • Global market -3% to -1%
  • U.S. market -1% to flat
  • U.S. R&R -4% to -3%
  • China market -20% to -15%
  • Net sales [organic] -2% to flat

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.6%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.8%

Avg return

30 days after

53%

31 / 59 earnings

Positive

+14.3%

Q2 2024

Best reaction

-17.6%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.8%-8.3%+0.1%
Q4 2025-17.6%-13.6%-30.7%
Q3 2025+3.8%+3.9%+5.8%
Q1 2025-8.7%+8.7%-3.0%
Q4 2024-1.4%-0.2%-7.7%
Q3 2024-7.7%-8.5%-7.9%
Q2 2024+14.3%+17.9%+17.9%
Q1 2024-5.7%-2.8%-8.5%
Q4 2023-2.9%-3.3%+1.6%
Q3 2023-2.1%-2.3%+16.3%
Q2 2023-5.4%-5.0%-13.0%
Q1 2023+5.4%+7.0%+3.6%
Q4 2022-0.6%-6.0%-12.1%
Q3 2022+0.6%+2.5%+13.8%
Q2 2022+4.6%+4.9%-5.1%
Q1 2022-3.6%-3.9%-8.3%
Q4 2021-4.7%-3.6%-11.7%
Q3 2021+2.0%+4.3%+8.6%
Q2 2021+1.0%+3.8%+5.4%
Q1 2021+1.2%+1.9%+9.4%
Q4 2020-4.6%-1.5%+7.4%
Q3 2020+0.1%+3.4%+3.9%
Q2 2020+6.5%+8.5%+18.1%
Q1 2020-11.5%-20.4%+8.3%
Q4 2019-7.2%-5.1%-35.3%
Q3 2019+0.9%+1.9%+3.9%
Q2 2019-4.6%-1.8%-3.5%
Q1 2019+0.6%+5.6%+10.9%
Q4 2018-1.3%-2.2%-5.3%
Q3 2018-4.4%-5.2%-6.4%
Q2 2018+0.8%+1.8%-5.7%
Q1 2018-3.0%+1.8%-7.1%
Q4 2017-4.2%-2.3%-5.8%
Q3 2017-1.4%-3.0%+3.4%
Q2 2017+0.3%-1.8%-3.2%
Q1 2017-0.6%-0.8%+4.5%
Q4 2016+0.9%+0.9%+4.7%
Q3 2016-0.9%+2.3%+0.9%
Q2 2016+0.5%+0.7%+0.6%
Q1 2016+1.2%
Q4 2015+0.2%
Q3 2015+2.5%
Q2 2015+2.9%
Q1 2015-0.7%
Q4 2014-2.2%
Q3 2014+3.3%
Q2 2014+1.6%
Q1 2014+1.8%
Q4 2013+5.1%
Q3 2013-0.6%
Q2 2013+1.9%
Q1 2013-3.2%
Q4 2012+1.9%
Q3 2012-0.3%
Q2 2012+0.2%
Q1 2012-1.6%
Q2 2011+1.5%
Q4 2010+2.3%
Q3 2011+2.3%
Q1 2011
Q3 2010
Q2 2010
Q1 2010

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