The 10-second takeaway
For the quarter ended June 2 (Q2), HB Fuller met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
HB Fuller reported revenue of $527.0 million. The six analysts polled by S&P Capital IQ looked for sales of $524.7 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $393.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The six earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.04 for Q2 were 92% lower than the prior-year quarter's $0.50 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 25.9%, 270 basis points worse than the prior-year quarter. Operating margin was 8.3%, 60 basis points worse than the prior-year quarter. Net margin was 0.4%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $524.3 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $2.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 93 members out of 102 rating the stock outperform, and nine members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give HB Fuller a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HB Fuller is outperform, with an average price target of $35.80.
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