The 10-second takeaway
For the quarter ended Dec. 3 (Q4), H.B. Fuller beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share improved significantly.
Gross margins grew, operating margins expanded, and net margins contracted.
H.B. Fuller booked revenue of $437 million. The five analysts polled by S&P Capital IQ wanted to see net sales of $423 million. Sales were 21% higher than the prior-year quarter's $360 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.65. The six earnings estimates compiled by S&P Capital IQ predicted $0.60 per share on the same basis. GAAP EPS of $0.53 for Q4 were 21% higher than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 28.8%, 50 basis points better than the prior-year quarter. Operating margin was 9.2%, 100 basis points better than the prior-year quarter. Net margin was 6.0%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $387 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.9 billion. The average EPS estimate is $2.03.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on H.B. Fuller is outperform, with an average price target of $24.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.