NYSE$FBIN

Fortune Brands Innovations Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Fortune Brands delivered solid sales and margin performance with strong cash generation.

Fortune Brands Innovations reported a 3% increase in Q4 2023 sales, reaching $1.2 billion. EPS decreased by 35% to $0.64, while EPS before charges/gains decreased by 11% to $0.95.

  • Q4 2023 sales were $1.2 billion, an increase of 3 percent over Q4 2022.
  • Organic sales excluding the impact of the non-reoccurring 53rd week and FX were $1.1 billion, a decrease of 3 percent versus Q4 2022
  • Q4 2023 earnings per share (EPS) were $0.64, a decrease of 35 percent versus a year ago
  • Company announces new $650 million share repurchase authorization reflecting confidence in outlook and commitment to driving long-term shareholder value

Headline financials

Total Revenue

$1.16B

Previous: $1.13B+2.7%
EPS (adj)

$0.95

Previous: $1.07-11.2%
Capital Expenditures

-$80.8M

Previous: $71M-213.8%
Free Cash Flow

$799M

Previous: $207M+287.1%
Net Income

$81.3M

Previous: $110M-26.0%
Operating Income

$134M

Previous: $182M-26.5%
Gross Profit

$477M

Previous: -$2.46B+119.3%
Stock-Based Comp

$8.5M

Previous: $10.2M-16.7%

Revenue & EPS history

Fortune Brands · Revenue · Quarterly

$1.16B

Q4 2023+2.7%vs Q4 2022
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

Full year 2024 financial guidance reflects expectation of outperformance as the company executes strategy of growing the core and accelerating connected products, and the defined pathway toward margin growth.

Tailwinds

  • Net sales 3.5% to 5.5%
  • Operating margin before charges / gains 16.5% to 17.5%
  • EPS before charges / gains $4.20 to $4.40
  • Cash flow from operations Around $720 million
  • Free cash flow Around $520 million

Headwinds

  • Global market -3% to 0%
  • U.S. market -2% to 0%
  • U.S. R&R -4% to -2%
  • China market -9% to -7%
  • Net sales [organic] -1% to 1%

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 2023

Historical avgQ4 2023

-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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