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Apr 01, 2023

Fortune Brands Q1 2023 Earnings Report

Fortune Brands Innovations outperformed expectations amid a challenging macro environment and increased its full-year EPS guidance.

Key Takeaways

Fortune Brands Innovations reported solid Q1 2023 results with sales of $1.0 billion and EPS of $0.67. The company increased its full-year EPS guidance, reflecting operational outperformance and share repurchases.

Q1 2023 sales were $1.0 billion, a decrease of 9 percent versus Q1 2022.

Q1 2023 earnings per share (EPS) were $0.67, a decrease of 29 percent versus a year ago; EPS before charges / gains were $0.69, a decrease of 24 percent versus Q1 2022.

Operating income was $131.8 million, a decrease of 27 percent.

The Company repurchased approximately $100 million in common stock in the quarter.

Total Revenue
$1.04B
Previous year: $1.14B
-8.8%
EPS
$0.69
Previous year: $1.36
-49.3%
Operating Margin Before Charges/Gains
13.1%
Gross Profit
$1.04B
Previous year: $680M
+53.1%
Cash and Equivalents
$539M
Previous year: $378M
+42.5%
Free Cash Flow
$35.8M
Previous year: -$244M
-114.7%
Total Assets
$5.97B
Previous year: $8.24B
-27.5%

Fortune Brands

Fortune Brands

Forward Guidance

The Company is increasing the midpoint of full-year EPS before charges / gains guidance by $0.05 to a range of $3.65 to $3.85, reflecting the Company’s operational outperformance amid an external environment that is expected to remain challenging and the impact of share repurchases. The Company continues to expect a global housing market decline of 6.5 percent to 8.5 percent with full-year net sales down in the range of 5 percent to 7 percent, operating margins between 16 percent and 17 percent, EBITDA margins before charges / gains of between 19 percent and 20 percent and free cash flow of approximately $475 million.