Earnings Review and Free Research Report: H.B. Fuller’s Revenue Grew 9.8%; Adjusted EPS Gained 2%

Research Desk Line-up: OMNOVA Solutions Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on H.B. Fuller Co. (NYSE: FUL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FUL, following the Company’s release of its third quarter fiscal 2017 financial results on September 27, 2017. The adhesives Company topped revenue expectations and narrowed its adjusted EPS guidance for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Specialty Chemicals industry. Pro-TD has currently selected OMNOVA Solutions Inc. (NYSE: OMN) for due-diligence and potential coverage as the Company announced on September 28, 2017, its financial results for Q3 2017 which ended on August 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on OMNOVA Solutions when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FUL; also brushing on OMN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=FUL

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Earnings Reviewed

For the third quarter that ended September 2, 2017, H.B. Fuller’s net revenue was $562.87 million, up 9.8% versus Q3 FY16 revenue of $512.86 million, driven by higher volume, pricing and acquisitions, offset by negative foreign currency translation. On a constant currency basis, the Company’s revenue grew 11% on a y-o-y basis. H.B. Fuller’s organic revenue, defined as constant currency revenue less the impact from acquisitions, grew 7% on a y-o-y basis. The Company’s revenue beat analysts’ estimates of $553.7 million.

During Q3 FY17, H.B. Fuller’s gross profit margin was 26.7% and adjusted gross profit margin was 27.1%. The Company’s margins remained lower y-o-y due to higher raw material costs relative to the timing of price increases. The Company’s selling, general, and administrative (SG&A) expense was $110.2 million for the reported quarter, while adjusted SG&A expense was $100.4 million, up versus the prior year, primarily driven by last year’s lower incentive compensation offset somewhat by discretionary expense management and restructuring actions.

H.B. Fuller’s net income was $25.1 million, or $0.49 per diluted share, for Q3 FY17 versus net income of $32.7 million, or $0.64 per diluted share, in Q3 FY16. The Company’s adjusted diluted earnings per share in the reported quarter were $0.65 versus the prior year’s adjusted result of $0.64. The primary drivers for the earnings increase were strong volume growth and positive pricing actions, which offset higher y-o-y raw material costs. H.B. Fuller’s earnings fell short of Wall Street’s expectations of $0.68 per share.

Balance Sheet and Cash Flow

At the end of Q3 FY17, H.B. Fuller’s cash balances totaled $120 million with total debt of $799 million compared to Q2 FY17 cash and debt levels of $94 million and $786 million, respectively. Sequentially, the Company’s net debt was down by approximately $13 million dollars.

During Q3 FY17, H.B. Fuller’s cash flow from operations was positive $38 million, while it totaled $71 million for the first nine months of FY17, reflecting continued strength in the cash flow performance of the business, offset by restructuring charges and higher inventory balances. The Company’s capital expenditures were $8 million in the reported quarter.

On October 05, 2017, H.B. Fuller announced that its Board of Directors declared a regular quarterly cash dividend of $0.15 per share of common stock. The dividend is payable on November 02, 2017, to shareholders of record at the close of business on October 19, 2017.

Fiscal 2017 Guidance

H.B. Fuller narrowed its adjusted EPS guidance from the previous range of $2.57 to $2.67 to its new guidance range of $2.57 to $2.62 for FY17, reflecting the short-term impact of Hurricane Harvey. The Company’s adjusted EBITDA for FY17 is expected to be approximately $290 million versus its previous estimate of $290 to $300 million. H.B. Fuller’s constant currency growth, on a comparable 52-week basis, is now expected to be approximately 10% on a y-o-y basis, reflecting strong volume growth and more pricing to offset raw material inflation, which will be offset by approximately 2% of negative foreign currency translation.

Stock Performance

At the closing bell, on Monday, October 09, 2017, H.B. Fuller’s stock rose slightly by 0.19%, ending the trading session at $57.24. A total volume of 199.26 thousand shares have exchanged hands. The Company’s stock price surged 13.17% in the last three months, 12.21% in the past six months, and 25.80% in the previous twelve months. Moreover, the stock rallied 18.48% since the start of the year. The stock is trading at a PE ratio of 28.10 and has a dividend yield of 1.05%. The stock currently has a market cap of $2.90 billion.

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