The chart below shows how FBIN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FBIN sees a +0.46% change in stock price 10 days leading up to the earnings, and a +1.50% change 10 days following the report. On the earnings day itself, the stock moves by -0.25%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
EPS Growth Performance: Fourth quarter EPS increased by 3% to $0.98 compared to Q4 2023, reflecting strong earnings performance.
Operating Margin Improvement: Operating margins improved by 60 basis points to 16.4% in Q4 2024, demonstrating effective cost management and operational efficiency.
Strong Cash Generation: Full year 2024 free cash flow reached approximately $475 million, with a cash conversion exceeding 100% of net income, indicating strong cash generation capabilities.
Share Repurchase Authorization: The company announced a new $1 billion share repurchase authorization, showcasing confidence in cash generation and commitment to enhancing shareholder value.
Digital Sales Momentum: Digital sales for 2024 totaled $214 million, with significant growth in the Flow business, indicating strong momentum in the digital product segment.
Negative
Q4 Sales Decline: Net sales for Q4 2024 were $1.1 billion, a 5% decrease compared to Q4 2023, primarily impacted by a software outage, hurricanes, and continued softness in China.
Organic Sales Decline: Full year 2024 organic sales were $4.4 billion, down 5% year-over-year, indicating a decline in core business performance despite some growth in specific segments.
Security Segment Sales Decline: The security segment experienced a significant 17% drop in Q4 sales, with organic sales down approximately 10% when excluding the software outage, reflecting ongoing challenges in this area.
China Market Challenges: China's market continued to be a headwind, with sales down 30% in Q4 and 31% for the full year, indicating persistent difficulties in this key market.
Cautious Market Outlook: The overall market outlook for 2025 is cautious, with expectations of flat to low single-digit growth in key segments, reflecting ongoing economic uncertainties and potential headwinds.
Earnings call transcript: Fortune Brands Q4 2024 sees stock dip after earnings miss
FBIN.N
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