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Fortune Brands Declared Dividend of $0.16 per Share



Price movement

Fortune Brands Home & Security (FBHS) has a market cap of $8.9 billion. FBHS rose by 0.46% to close at $57.37 per share on April 25, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.1%, 5.2%, and 3.7%, respectively, as of the same day.

This means that FBHS is trading 0.47% above its 20-day moving average, 7.0% above its 50-day moving average, and 12.6% above its 200-day moving average.

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Related ETF and peers

The Vanguard Mid-Cap ETF (VO) invests 0.28% of its holdings in Fortune Brands Home & Security. The ETF tracks the CRSP US Mid-Cap Index, a diversified index of midcap US companies. The YTD price movement of VO was 2.7% as of April 22, 2016.

The market caps of FBHS’s competitors are as follows:

  • Stanley Black & Decker (SWK) — $16.8 billion
  • Masco Corporation (MAS) — $10.7 billion
  • Spectrum Brands Holdings (SPB) — $6.5 billion

Fortune Brands declared dividend

Fortune Brands Home & Security (FBHS) has declared a quarterly cash dividend of $0.16 per share on its common stock. The dividend will be paid on June 15, 2016, to shareholders of record at the close of business on May 27, 2016.

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Performance of Fortune Brands in fiscal 1Q16

Fortune Brands reported fiscal 1Q16 net sales of $1,106.5 million, a rise of 16.4% compared to net sales of $950.8 million in fiscal 1Q15. Sales of cabinets, plumbing, doors, and security rose by 33.8%, 1.5%, 13.3%, and 0.57%, respectively, in fiscal 1Q16 compared to fiscal 1Q15. It reported the amortization of intangible assets of $6.5 million in fiscal 1Q16, a rise of 86% compared to fiscal 1Q15.

Its net income and EPS (earnings per share) rose to $55.7 million and $0.35, respectively, in fiscal 1Q16, compared to $40.0 million and $0.25, respectively, in fiscal 1Q15.

Fortune Brands’ cash and cash equivalents and inventories rose by 6.3% and 7.6%, respectively, in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio and debt-to-equity ratio rose to 2.2x and 1.3x, respectively, in fiscal 1Q16, compared to 1.9x and 0.99x, respectively, in fiscal 4Q15.


Fortune Brands has made the following projections for fiscal 2016:

  • Sales growth in the range of 10%–12% based on an increase in the sales from the Norcraft acquisition and from the expectation of outperforming the market.
  • EPS before charges and gains were in the range of $2.50–$2.60, which includes the positive impact of $0.06 from share repurchases and $0.02 from stronger results in fiscal 1Q16.

In the next part, we’ll look at Allison Transmission.


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