HB Fuller Beats on EPS but GAAP Results Lag

HB Fuller (NYS: FUL) reported earnings on June 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 2 (Q2), HB Fuller met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
HB Fuller reported revenue of $527.0 million. The six analysts polled by S&P Capital IQ looked for sales of $524.7 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $393.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The six earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.04 for Q2 were 92% lower than the prior-year quarter's $0.50 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.9%, 270 basis points worse than the prior-year quarter. Operating margin was 8.3%, 60 basis points worse than the prior-year quarter. Net margin was 0.4%, 600 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $524.3 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $2.17.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 93 members out of 102 rating the stock outperform, and nine members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give HB Fuller a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HB Fuller is outperform, with an average price target of $35.80.

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The article HB Fuller Beats on EPS but GAAP Results Lag originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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