NYSE$FBIN

Fortune Brands Innovations Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Fortune Brands achieved strong sales and profit growth amidst a challenging environment.

Fortune Brands Home & Security, Inc. reported a 20 percent increase in sales, approaching $2.0 billion for the third quarter of 2021, with earnings per share rising by 24 percent to $1.45. The company is actively managing supply chain challenges and remains on track to deliver record performance for the year.

  • 3Q 2021 sales increased 20 percent year-over-year and approached $2.0 billion.
  • 3Q 2021 earnings per share (EPS) increased 24 percent to $1.45 per share versus the prior-year-quarter; EPS before charges / gains increased 25 percent year-over-year to $1.49
  • Company on track to deliver both record performance in 2021 and long-term growth and margin targets
  • Company revising 2021 full year financial outlook to reflect near-term supply chain and labor availability challenges

Headline financials

Total Revenue

$1.99B

Previous: $1.65B+20.2%
EPS (adj)

$1.47

Previous: $1.19+23.5%
Operating Margin

14.4%

No prior period
Operating Margin Before Charges/Gains

14.8%

Previous: 14.8%+0.0%
Capital Expenditures

-$113M

Previous: -$66.2M-70.7%
Free Cash Flow

$89.1M

Previous: $98.4M-9.5%
Net Income

$202M

Previous: $165M+22.8%
Operating Income

$287M

Previous: $240M+19.3%
Gross Profit

$706M

Previous: $581M+21.7%
Cash & Equivalents

$461M

Previous: $465M-0.8%
Total Assets

$7.87B

Previous: $6.52B+20.7%
Stock-Based Comp

$11.6M

Previous: $18.5M-37.3%

Revenue & EPS history

Fortune Brands · Revenue · Quarterly

$1.99B

Q3 2021+20.2%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
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

The Company expects to continue outperforming a fundamentally strong housing market. The Company now anticipates delivering full-year sales growth in the range of 24.5 percent to 25.5 percent, or 17.5 percent to 18.5 percent excluding the LARSON acquisition. This reflects the Company’s revised assumptions of a global home products market now expanding by approximately 11 percent to 12 percent, including growth in the U.S. home products market of approximately 12 percent to 13 percent. The Company now expects EPS before charges / gains for the full year to be in the range of $5.63 to $5.73, representing an increase at the midpoint of 36 percent versus a year ago. For 2021, the Company expects to generate free cash flow of approximately $625 to $675 million.

Tailwinds

  • The Company expects to continue outperforming a fundamentally strong housing market.
  • The Company now anticipates delivering full-year sales growth in the range of 24.5 percent to 25.5 percent, or 17.5 percent to 18.5 percent excluding the LARSON acquisition.
  • This reflects the Company’s revised assumptions of a global home products market now expanding by approximately 11 percent to 12 percent, including growth in the U.S. home products market of approximately 12 percent to 13 percent.
  • The Company now expects EPS before charges / gains for the full year to be in the range of $5.63 to $5.73, representing an increase at the midpoint of 36 percent versus a year ago.
  • For 2021, the Company expects to generate free cash flow of approximately $625 to $675 million.

Headwinds

  • Company revising 2021 full year financial outlook to reflect near-term supply chain and labor availability challenges
  • While supply chain and labor availability headwinds have increased, we are addressing these challenges head-on.
  • We continue to develop and deploy our Fortune Brands Advantage capabilities to further reduce complexity and increase our efficiencies in global sourcing.
  • These actions will help offset these near-term headwinds while also increasing our ability to invest further.
  • While the near-term backdrop has become increasingly dynamic, we have the talent and capabilities to overcome these challenges.

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 Q3 2021

Historical avgQ3 2021

-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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