Fortune Brands Home & Security (FBHS) Tops Q1 EPS by 14c; Suspend Guidance

Fortune Brands Home & Security (NYSE: FBHS) reported Q1 EPS of $0.81, $0.14 better than the analyst estimate of $0.67. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.37 billion.

“Despite strong sales and profit growth in the first quarter, we began to proactively take steps to rigorously manage cash and expenses and further strengthen our balance sheet to manage any impact of the COVID-19 pandemic and emerge poised to accelerate share gains in a recovery,” said Nicholas Fink, chief executive officer, Fortune Brands. “We continued to operate well in a challenging environment, and I want to thank our dedicated teammates who have been working tirelessly to keep each other healthy and safe while executing with excellence. Our strong operating performance in the quarter was evident throughout our business and will distinguish us in a more challenging environment. Our exceptional cabinets results are proof that our pivot plan is now delivering, with more to come. Our plumbing group outgrew its market even with major business disruption in China, and our doors and decking business delivered double-digit growth at expanding margins.”

GUIDANCE:

The Company started the year with a strong first quarter, reflective of the share gain momentum and operating excellence in each of the businesses. Due to COVID-19, the Company expects a deceleration in its markets in the second and third quarter. The Company has established plans in each of its businesses to reduce expenses and cash deployment significantly. These actions are already underway, will be implemented in waves, and are expected to offset some of the anticipated demand headwinds.

As the Company has continued to operate in most of its manufacturing and distribution locations, the Company has taken significant steps in excess of WHO and CDC guidelines to safely navigate the COVID-19 environment in each facility. The Company’s residential and commercial building and safety products have been generally deemed essential in North America. As a key supplier in the industry, the Company’s teammates have been working in an enhanced safety environment to continue to deliver these important products to consumers and trade professionals.

Due to the uncertainty around COVID-19 effects on near-term demand in the U.S. and in other countries in which the Company operates, the Company is suspending any previous financial guidance or projections for 2020 or beyond. The Company expects to provide further details on the quarterly earnings call.

For earnings history and earnings-related data on Fortune Brands Home & Security (FBHS) click here.

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