Fortune Brands (FBIN +5.62%) stock imploded on Friday, falling 18% through noon ET after missing on both top and bottom lines in its Q4 report last night.
Heading into the report, analysts forecast Fortune Brands would earn $1 a share on sales above $1.1 billion. Fortune actually earned $0.86 per share on sales just under $1.1 billion.
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Fortune Brands Q4 earnings
Fortune Brands' sales slipped 2% in Q4, and that's not the worst part -- earnings plummeted 25% year over year. (Non-GAAP earnings fell only 12% to $0.86 per share, but earnings as calculated according to generally accepted accounting principles (GAAP) were only $0.66.)
For the full year, Fortune's sales declined 3% to $4.5 billion, and GAAP profits crashed 34% to $2.47 per share.
Why such ill-fortune at Fortune? The company, which manufactures kitchen and bath fixtures under brands such as Moen, Larson screen doors, and Yale door locks, wasn't exactly clear on that point, instead complaining about a "challenging external environment" and promising to "refine" its costs and "optimize" its operations to improve profitability.
NYSE: FBIN
Key Data Points
Fortune Brands stock may be a sell
Fulfilling this mission will fall to new CEO Amit Banati, who will replace current Fortune Brands CEO Nicholas Fink effective May 13, 2026. Fortune Brands says Fink is leaving in April "to pursue a professional opportunity outside the Company." Still, one can't help but wonder if Fortune Brands' weak profit performance has something to do with his decision to leave (or the board's desire for him to leave).
At least Banati is being given reasonable targets to hit. Fortune Brands is guiding investors to expect only flat to 2% sales growth this year, and non-GAAP earnings of about $3.50 -- 3% lower than last year.
