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Sep 30, 2022
Fortune Brands Q3 2022 Earnings Report
Fortune Brands delivered strong operating margin and profit results, and updated its guidance to reflect a softening market environment.
Key Takeaways
Fortune Brands Home & Security, Inc. announced third quarter 2022 results, with sales increasing 3% to $2.1 billion and EPS before charges/gains increasing 20% to $1.79. The company updated its full-year guidance to reflect a softening market environment.
3Q 2022 sales of $2.1 billion, an increase of 3 percent versus a year ago
3Q 2022 earnings per share (EPS) of $1.57, an increase of 8 percent versus a year ago
EPS before charges / gains of $1.79, an increase of 20 percent versus a year ago
Full-year guidance updated to reflect a softening market environment
Fortune Brands
Fortune Brands
Fortune Brands Revenue by Segment
Revenue by Segment
Water Revenue
CapyFin.comOutdoors Revenue
CapyFin.comSecurity Revenue
CapyFin.com Forward Guidance
The Company now anticipates delivering 2022 full-year sales growth in the range of 4.5 percent to 5.5 percent relative to a global home products market growing at 2 percent to 4 percent and a U.S. home products market growing at 3 percent to 5 percent. The Company now expects EPS before charges / gains for the full year to be in the range of $6.20 to $6.30. The Company now expects to generate free cash flow of approximately $400 million to $450 million.
Positive Outlook
- Delivering 2022 full-year sales growth in the range of 4.5 percent to 5.5 percent
- Global home products market growing at 2 percent to 4 percent
- U.S. home products market growing at 3 percent to 5 percent
- EPS before charges / gains for the full year to be in the range of $6.20 to $6.30
- Generate free cash flow of approximately $400 million to $450 million
Challenges Ahead
- Increasing headwinds in response to slowing new construction
- Increasing headwinds in response to slowing R&R activity
- Greater than expected channel inventory reductions
- Softer market in 2023
- Housing affordability weighed on the consumer
Revenue & Expenses
Visualization of income flow from segment revenue to net income