The 10-second takeaway
For the quarter ended March 3 (Q1), HB Fuller beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Gross margins improved, operating margins increased, net margins contracted.
HB Fuller chalked up revenue of $375.3 million. The five analysts polled by S&P Capital IQ expected a top line of $361.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $339.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.44. The six earnings estimates compiled by S&P Capital IQ averaged $0.37 per share on the same basis. GAAP EPS of $0.30 for Q1 were 3.4% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.4%, 190 basis points better than the prior-year quarter. Operating margin was 8.2%, 190 basis points better than the prior-year quarter. Net margin was 4.1%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $526.6 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $2.12.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 98 members out of 107 rating the stock outperform, and nine members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give HB Fuller a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HB Fuller is outperform, with an average price target of $32.00.
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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.