Core Viewpoint - Fortune Brands Innovations (FBIN) reported quarterly earnings of $0.98 per share, missing the Zacks Consensus Estimate of $1.05 per share, but showing an increase from $0.95 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -6.67%, with the company previously expected to post earnings of $1.15 per share but actually reporting $1.16 per share in the prior quarter, resulting in a positive surprise of 0.87% [2] - Revenues for the quarter ended December 2024 were $1.1 billion, missing the Zacks Consensus Estimate by 3.61%, and down from $1.16 billion year-over-year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates three times but has only topped revenue estimates once [3] Stock Performance and Outlook - Since the beginning of the year, Fortune Brands Innovations shares have increased by approximately 1.5%, compared to a 3.1% gain in the S&P 500 [4] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [5] Earnings Estimate Revisions - The trend for earnings estimate revisions ahead of the earnings release was favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $1.11 billion, and for the current fiscal year, it is $4.53 on revenues of $4.78 billion [8] Industry Context - The Retail - Home Furnishings industry, to which Fortune Brands Innovations belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Data and Key Metrics Changes - For Q4 2024, net sales were $1.1 billion, a 5% decrease compared to Q4 2023, with organic sales down 1% after adjusting for external impacts [11][46] - Full year 2024 net sales were flat at $4.6 billion, with organic sales down 5% or down 2% excluding China and one-time disruptions [12][46] - Q4 2024 EPS was $0.98, up 3% from Q4 2023, while full year EPS was $4.12, a 5% increase over 2023 [11][13] - Operating margins for Q4 were 16.4%, a 60 basis point improvement year-over-year, and full year operating margins increased by 90 basis points to 16.9% [12][46] Business Line Data and Key Metrics Changes - Water Innovation segment saw Q4 sales down 3%, but organic sales increased 2% when excluding China and hurricane impacts, with operating margins at 23.7% [29][47] - Outdoor segment sales decreased by 2% in Q4, but full year sales increased by 1%, with operating margins at 18.2% for Q4 [35][51] - Security segment sales were down 17% in Q4, or down 10% when adjusting for a software outage, with full year sales down 4% [37][53] Market Data and Key Metrics Changes - The overall market for products is expected to be down 2% to up 1% in 2025, with U.S. R&R (repair and remodel) projected to be down 1% to up 2% [59][60] - The single-family new construction market is anticipated to be flat in 2025, with low single-digit growth in starts and completions [26][59] Company Strategy and Development Direction - The company is focusing on high-growth and profitable opportunities, simplifying its leadership structure, and investing in digital transformation and brand building [5][9][10] - A new $1 billion share repurchase authorization was approved, reflecting confidence in cash generation and long-term shareholder value [14][54] - The company plans to leverage its digital capabilities and partnerships to drive growth, particularly in the connected products space [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform in 2025, citing strong brand positioning and innovation [6][24] - The macro environment remains challenging, but there are medium to long-term tailwinds expected due to strong consumer demand for homes [25][56] - Management anticipates a cautious approach in the first half of 2025, with expectations for gradual improvement in the second half [72][76] Other Important Information - The company is moving its regional offices to a new headquarters in Deerfield, Illinois, to foster innovation and collaboration [8] - Significant investments were made in digital products, with digital sales reaching $214 million in 2024 and expected to contribute 150 basis points to growth in 2025 [16][21] Q&A Session Summary Question: Can you talk about the initiatives and actions taken over the last twelve months and their implications for 2025? - Management highlighted growth in the water segment and strong performance in the outdoor business, with digital assets and marketing strategies set to drive growth in 2025 [67][70] Question: How is the state of the consumer as we enter 2025? - The consumer remains cautious, but there is resilience in the high-end market, with efforts to differentiate brands against counterfeit products expected to drive sales [79][81] Question: Can you elaborate on the Connected Products growth and its contribution to overall sales? - Connected Products are expected to contribute 150 basis points to growth in 2025, with significant sales activation and conversion efforts underway [90]

Financial Performance - Q4 2024 sales were $1.1 billion, a decrease of 5% compared to Q4 2023; organic sales excluding the impact of China and one-time disruptions were down 1%[3] - Q4 2024 earnings per share (EPS) were $0.84, an increase of 31% year-over-year; EPS before charges/gains were $0.98, an increase of 3% compared to Q4 2023[3] - Full-year 2024 sales were $4.6 billion, flat compared to 2023; organic sales excluding the impact of China and one-time disruptions were down 2%[3] - Net income for the fifty-two weeks ended December 28, 2024, increased to $471.9 million, up 16% from $404.5 million in the previous year[33] - The company reported a total GAAP net sales of $4,609.0 million for the fifty-two weeks ended December 28, 2024, compared to $4,626.2 million in the previous year[48] Cash Flow and Debt Management - The company generated $668 million of operating cash flow and $475 million of free cash flow for the full year, representing over a 100% cash conversion ratio[9] - The company exited Q4 2024 with net debt of $2.3 billion and a net debt to EBITDA ratio of 2.4x[10] - Long-term debt decreased to $2,173.7 million from $2,670.1 million, indicating improved financial leverage[27] - Free cash flow for the fifty-two weeks ended December 28, 2024, was $474.5 million, a decrease of 41% from $799.3 million in the prior year, with an estimated range of $580 to $620 million for 2025[30] - The cash conversion ratio for the fifty-two weeks ended December 28, 2024, was 101%, with an estimated range of 115% to 125% for 2025[30] Shareholder Value and Future Guidance - The company announced a new $1 billion share repurchase authorization, reflecting confidence in cash generation and commitment to long-term shareholder value[3] - Full-year 2025 guidance indicates net sales growth of flat to 3% and EPS before charges/gains between $4.15 and $4.45[15] - The company expects the global market to decline by 2% to 1% and the China market to decline by 15% to 10% in 2025[14] Segment Performance - Water Innovations segment reported net sales of $2.565 billion for 2024, with an operating margin of 23.2%[8] - The Water segment reported net sales of $644.6 million, down $18.4 million or 3% year-over-year, while the Outdoors segment saw a decrease of $6.2 million or 2% to $303.0 million[24] - The Security segment experienced a significant decline in operating income before charges/gains, dropping to $14.6 million, down $18.0 million or 55% from $32.6 million in the previous year[25] - The Outdoors segment saw a significant operating income increase of 641% to $54.1 million for the thirteen weeks ended December 28, 2024, from $7.3 million in the prior year[43] Operating Income and Margins - Operating income before charges/gains for the total company was $181.6 million for the thirteen weeks ended December 28, 2024, a decrease of $2.0 million or 1% compared to $183.6 million in the prior year[25] - Operating income increased by 33% to $178.3 million for the thirteen weeks ended December 28, 2024, compared to $134.0 million in the same period of 2023[43] - The company reported a total operating income of $737.9 million for the fifty-two weeks ended December 28, 2024, representing a 20% increase from $614.9 million in the previous year[43] - Operating margin for the total company improved by 460 basis points to 16.1% for the thirteen weeks ended December 28, 2024, compared to 11.5% in the same period of 2023[46] Asset Management - Total assets as of December 28, 2024, were $6,561.8 million, a slight decrease from $6,565.0 million as of December 30, 2023[27] - Cash and cash equivalents increased to $381.1 million from $366.4 million year-over-year, reflecting a positive cash flow position[27] - The company reported a total equity of $2,422.0 million, up from $2,293.4 million, showing a strengthening balance sheet[27] Charges and Impairments - The company experienced a significant reduction in asset impairment charges, reporting none for the fifty-two weeks ended December 28, 2024, compared to $33.5 million in the previous year[33] - Restructuring charges decreased by 39% to $2.2 million for the thirteen weeks ended December 28, 2024, from $3.6 million in the same period of 2023[44] - Other charges decreased significantly by 88% to $1.1 million for the thirteen weeks ended December 28, 2024, compared to $9.4 million in the prior year[44] Sales Trends - Total net sales for the thirteen weeks ended December 28, 2024, were $1,104.1 million, a decrease of $57.2 million or 5% compared to $1,161.3 million for the same period in 2023[24] - The company reported a 5% decrease in net sales for the fifty-two weeks ended December 28, 2024, totaling $4.609 billion, compared to $4.626 billion in the previous year[33] - Organic net sales excluding the impact of acquisitions for the total company decreased by $64.0 million, or 6%, for the thirteen weeks ended December 28, 2024[48] - The Security segment experienced a significant decline, with GAAP net sales down by $32.6 million, or 17%, for the thirteen weeks ended December 28, 2024[48]

Core Viewpoint - Fortune Brands Innovations, Inc. (FBIN) is expected to report its fourth-quarter results on February 6, 2024, with earnings per share (EPS) estimates showing a potential increase from the previous year despite anticipated revenue declines due to market challenges [1][3]. Financial Performance - In the last reported quarter, FBIN's adjusted earnings exceeded the Zacks Consensus Estimate, while sales fell short, with year-over-year earnings and sales decreasing by 3% and 8%, respectively [2]. - The Zacks Consensus Estimate for FBIN's EPS has risen to $1.05, reflecting a 10.5% increase from the previous year, while total revenue is estimated at $1.15 billion, indicating a 1.4% decrease year-over-year [3]. Market Conditions - The decline in FBIN's top line is attributed to ongoing softness in the residential market, driven by high mortgage rates and macroeconomic challenges, which have constrained consumer spending on home improvement products [4]. - Although FBIN has reduced its exposure to China, the prolonged real estate downturn in the region poses a significant risk to its earnings, likely impacting the upcoming quarter's performance [5]. Competitive Landscape - FBIN faces price competition from low-quality alternatives, particularly in categories like security safes and water products, which has affected its quarterly performance [6]. - The company is responding with targeted marketing to emphasize the quality and reliability of its brands [6]. Strategic Focus - FBIN's emphasis on high-margin, digitally enabled products, such as the Flo Smart Water Monitor, is expected to help mitigate top-line weaknesses, with strong traction noted in the third quarter [7][9]. - The company's luxury brands under House of Rohl are well integrated into its portfolio, and reconstruction activities following natural disasters could drive demand for its products [7]. Segment Performance - The Zacks Consensus Estimate for the Outdoor segment sales is $307 million, a slight decline from $309 million a year ago. The Security segment is estimated at $173 million, down from $189 million, while the Water segment is pegged at $661 million, a minor decline from $663 million [8]. Earnings Prediction - The model predicts an earnings beat for FBIN, supported by a positive Earnings ESP of +2.10% and a Zacks Rank of 2 (Buy) [11].

Core Insights - Analysts project that Fortune Brands Innovations (FBIN) will report quarterly earnings of $1.05 per share, reflecting a year-over-year increase of 10.5% [1] - Revenue is expected to reach $1.15 billion, indicating a decline of 1.4% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, suggesting a reassessment of projections by covering analysts [1] Revenue Projections - Analysts forecast 'Net Sales- Outdoors' to be $307.14 million, representing a year-over-year change of -0.7% [3] - The consensus estimate for 'Net Sales- Security' is $173.36 million, indicating a decline of 8.3% from the prior-year quarter [4] - 'Net Sales- Water' is projected to reach $660.52 million, reflecting a change of -0.4% from the year-ago quarter [4] Operating Income Estimates - The estimated 'Operating Income(loss) before charges/gains (Non-GAAP)- Water' is $154.92 million, up from $144.30 million in the previous year [5] - 'Operating Income(loss) before charges/gains (Non-GAAP)- Outdoors' is expected to be $56.66 million, compared to $42.90 million a year ago [5] - The average prediction for 'Operating Income(loss) Before Charges/Gains (Non-GAAP)- Security' is $22.26 million, down from $32.60 million reported in the same quarter last year [6] Stock Performance - Shares of Fortune Brands Innovations have increased by 1.5% over the past month, compared to a 1.7% increase in the Zacks S&P 500 composite [6] - With a Zacks Rank 2 (Buy), FBIN is anticipated to outperform the overall market in the near future [6]

Fortune Brands Innovations (FBIN) closed the last trading session at $68.96, gaining 0.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $86.46 indicates a 25.4% upside potential.The average comprises 13 short-term price targets ranging from a low of $75 to a high of $101, with a standard deviation of $8.15. While the lowest estimate indicates an increase of 8.8% from the current ...

Investors looking for stocks in the Retail - Home Furnishings sector might want to consider either Fortune Brands Innovations (FBIN) or Williams-Sonoma (WSM) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Za ...

Core Viewpoint - Fortune Brands Innovations (FBIN) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 6, 2025, with expectations of quarterly earnings at $1.05 per share, reflecting a +10.5% change year-over-year, while revenues are projected to be $1.15 billion, down 1.4% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.10%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which enhances predictive power [8][9]. Historical Performance - Fortune Brands Innovations has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +0.87% surprise in the most recent quarter [12][13]. Conclusion - While the company is positioned as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of the earnings release [16].

I gave a buy rating to Fortune Brands Innovations (NYSE: FBIN ) in August, with my key thesis being that growth should get better as the US macro conditions recover, and with the partnership strategy, medium-termI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a ...

Fortune Brands Innovations (FBIN) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.87%. A quarter ago, it was expected that this maker of products for the home, like faucets, cabinets, windows and doors would post earnings of $1.12 per share when it actually produced earnings of $1.1 ...