NYSE$FBIN

Fortune Brands Innovations Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Delivered solid profit results while executing transformational actions amidst a challenging environment.

Fortune Brands Innovations reported a 7% decrease in Q4 sales, with earnings per share at $0.99. The company is prioritizing market-beating sales results, margin preservation, and cash generation in 2023 against a declining market.

  • Q4 sales declined 7 percent.
  • Q4 EPS were $0.99; EPS before / charges gains were $1.07.
  • Operating margin was 16.1 percent, Operating margin before charges / gains was 17.3 percent.
  • The Company used a portion of the proceeds from the dividend from the Cabinets spin-off to pay down all outstanding variable rate debt.

Headline financials

Total Revenue

$1.13B

Previous: $1.96B-42.4%
EPS (adj)

$1.07

Previous: $1.30-17.7%
Operating Margin

16.1%

Previous: 16.0%+0.6%
Operating Margin Before Charges/Gains

17.3%

Previous: 16.2%+6.8%
Capital Expenditures

$71M

Previous: $101M-29.8%
Free Cash Flow

$207M

Previous: $157M+31.8%
Net Income

$110M

Previous: $175M-37.3%
Operating Income

$182M

Previous: $260M-30.0%
Gross Profit

-$2.46B

Previous: $691M-456.8%
Cash & Equivalents

$643M

Previous: $426M+51.0%
Total Assets

$6.12B

Previous: $7.94B-22.9%
Stock-Based Comp

$10.2M

Previous: $14.2M-28.2%

Revenue & EPS history

Fortune Brands · Revenue · Quarterly

$1.13B

Q4 2022-42.4%vs Q4 2021
Beat estimate in 3 of 13 quarters(23%)
ActualEstimate

Revenue by segment

Fortune Brands · $1.13B total across 2 segments · Q4 2022

  • Water
    $642M-8.8%
  • Outdoors
    $490M-4.7%

Forward guidance

The Company expects full-year 2023 sales to be down 5 percent to 7 percent with operating margins between 16 percent and 17 percent. The Company expects EPS before charges / gains to be in the range of $3.60 to $3.80. For 2023, the Company expects to generate free cash flow of approximately $475 million, with a cash conversion rate of around 100 percent.

Tailwinds

  • Successfully executed a spin-off of Cabinets business.
  • Rebranded entire Company.
  • Reorganized the Company from a decentralized structure.
  • Placed global supply chain resources under a unified leadership team.
  • Will enable to deliver on the long-term targets.

Headwinds

  • The Company’s assumption of a total global market decline of 6.5 percent to 8.5 percent.
  • The U.S. housing market also declining 6.5 percent to 8.5 percent.
  • Expects full-year 2023 sales to be down 5 percent to 7 percent.
  • Implies decremental operating leverage of between 25 percent and 30 percent.
  • Expects EPS before charges / gains to be in the range of $3.60 to $3.80.

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 Q4 2022

Historical avgQ4 2022

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro