Fortune Brands Home & Security (NYSE: FBHS) reported Q1 EPS of $0.63, $0.04 better than the analyst estimate of $0.59. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.31 billion.

• Q1 2019 sales increased 6 percent year-over-year to $1.3 billion
• Q1 2019 EPS $0.60; EPS before charges/gains increased 13 percent to $0.63, and were on plan
• Company maintains full-year 2019 EPS outlook before charges/gains of $3.53 - $3.77 on sales growth of 6 – 7.5 percent

“In the first quarter our performance was on plan, and housing market growth in the U.S. and Canada started the year out slowly, as expected,” said Chris Klein, chief executive officer, Fortune Brands. “Our teams executed well despite the softer backdrop, and recently we have seen some signs of improving demand. Overall we are tracking to our plan built around a more conservative market—with a soft first half start, and modest growth overall for the year,” said Klein. “Given improving fundamentals, we continue to expect a modest acceleration in growth in the second half of 2019.”

First Quarter 2019

For the first quarter of 2019, sales were $1.3 billion, an increase of 6 percent over the first quarter of 2018. Earnings per share were $0.60, compared to $0.49 in the prior-year quarter. EPS before charges/gains were $0.63, compared to $0.56 the same quarter last year. Operating income was $135.6 million, compared to $119.4 million in the prior-year quarter. Operating income before charges/gains was $142.0 million, compared to $124.3 million the same quarter last year, up 14 percent.

“Each of our businesses performed well, and consistent with our plans in the first quarter. Our plumbing business achieved its plan on sales and margin, and our cabinet pivot is showing visible signs of progress as sales grew 3 percent and margins increased 350 basis points,” Klein said. “Although much work remains ahead and the overall market is likely to remain soft through the first half, I am very pleased with the start to the year in cabinets and our other business segments.”

GUIDANCE:

Fortune Brands Home & Security sees FY2019 EPS of $3.53-$3.77, versus the consensus of $3.63.

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