Jefferies Group Comments on Fortune Brands Home & Security Inc’s Q1 2018 Earnings (FBHS)

Fortune Brands Home & Security Inc (NYSE:FBHS) – Stock analysts at Jefferies Group increased their Q1 2018 earnings estimates for Fortune Brands Home & Security in a research note issued on Wednesday. Jefferies Group analyst P. Ng now forecasts that the industrial products company will earn $0.65 per share for the quarter, up from their previous estimate of $0.57. Jefferies Group currently has a “Buy” rating and a $78.00 price target on the stock. Jefferies Group also issued estimates for Fortune Brands Home & Security’s Q3 2018 earnings at $1.07 EPS, FY2018 earnings at $3.88 EPS and FY2019 earnings at $4.41 EPS.

Fortune Brands Home & Security (NYSE:FBHS) last released its quarterly earnings data on Wednesday, October 25th. The industrial products company reported $0.83 EPS for the quarter, topping analysts’ consensus estimates of $0.82 by $0.01. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.38 billion. Fortune Brands Home & Security had a return on equity of 18.64% and a net margin of 8.62%. The business’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.80 EPS.

A number of other analysts also recently commented on the company. Zacks Investment Research upgraded Fortune Brands Home & Security from a “hold” rating to a “buy” rating and set a $77.00 price objective for the company in a report on Thursday, January 11th. Royal Bank of Canada dropped their price objective on Fortune Brands Home & Security from $78.00 to $74.00 and set an “outperform” rating for the company in a report on Monday, November 13th. SunTrust Banks restated a “hold” rating and set a $63.00 price objective on shares of Fortune Brands Home & Security in a report on Friday, November 10th. BidaskClub downgraded Fortune Brands Home & Security from a “hold” rating to a “sell” rating in a report on Tuesday, November 7th. Finally, JPMorgan Chase & Co. upped their price objective on Fortune Brands Home & Security from $70.00 to $78.00 and gave the stock an “overweight” rating in a report on Monday, October 30th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $71.33.

Shares of Fortune Brands Home & Security (FBHS) opened at $72.64 on Friday. The company has a market capitalization of $11,025.29, a price-to-earnings ratio of 25.05, a PEG ratio of 1.97 and a beta of 1.41. The company has a current ratio of 1.87, a quick ratio of 1.17 and a debt-to-equity ratio of 0.57. Fortune Brands Home & Security has a twelve month low of $54.24 and a twelve month high of $72.94.

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in Fortune Brands Home & Security by 3.1% in the 2nd quarter. Vanguard Group Inc. now owns 15,160,589 shares of the industrial products company’s stock valued at $989,078,000 after buying an additional 460,317 shares during the last quarter. American Century Companies Inc. boosted its position in Fortune Brands Home & Security by 1.6% in the 3rd quarter. American Century Companies Inc. now owns 4,232,353 shares of the industrial products company’s stock valued at $284,541,000 after buying an additional 64,987 shares during the last quarter. Pictet Asset Management Ltd. boosted its position in Fortune Brands Home & Security by 1.7% in the 3rd quarter. Pictet Asset Management Ltd. now owns 2,542,640 shares of the industrial products company’s stock valued at $170,942,000 after buying an additional 42,421 shares during the last quarter. Bank of New York Mellon Corp boosted its position in Fortune Brands Home & Security by 1.9% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,391,493 shares of the industrial products company’s stock valued at $93,550,000 after buying an additional 25,514 shares during the last quarter. Finally, Epoch Investment Partners Inc. purchased a new position in Fortune Brands Home & Security in the 3rd quarter valued at about $84,149,000. 87.31% of the stock is owned by hedge funds and other institutional investors.

In related news, CEO Christopher J. Klein sold 85,000 shares of the company’s stock in a transaction on Friday, October 27th. The shares were sold at an average price of $67.13, for a total transaction of $5,706,050.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ronald V. Waters sold 5,000 shares of the company’s stock in a transaction on Friday, January 5th. The stock was sold at an average price of $71.50, for a total transaction of $357,500.00. Following the sale, the director now directly owns 21,674 shares of the company’s stock, valued at $1,549,691. The disclosure for this sale can be found here. 1.61% of the stock is currently owned by corporate insiders.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 14th. Investors of record on Friday, February 23rd will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.10%. This is a boost from Fortune Brands Home & Security’s previous quarterly dividend of $0.18. The ex-dividend date is Thursday, February 22nd. Fortune Brands Home & Security’s dividend payout ratio is 24.83%.

Fortune Brands Home & Security declared that its board has authorized a share repurchase plan on Monday, December 11th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the industrial products company to purchase shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its stock is undervalued.

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About Fortune Brands Home & Security

Fortune Brands Home & Security, Inc is a holding company. The Company operates through four segments. The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names, including Aristokraft, Mid-Continent, Diamond, Kitchen Classics, Kitchen Craft, Schrock, Omega, Homecrest, Thomasville, StarMark and Ultracraft.

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