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H.B. Fuller Misses 3Q16 Earnings Estimate: Stock Reacts

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Sep. 27 2016, Published 3:28 p.m. ET

H.B. Fuller’s 3Q16 earnings

On September 21, 2016, H.B. Fuller (FUL) reported its 3Q16 earnings after market hours. It reported adjusted EPS (earnings per share) of $0.64 and missed Wall Street analysts’ estimate of $0.67.

On a year-over-year basis, adjusted EPS rose 4.9%. The increase in adjusted EPS is mainly due to a 2.8% fall in the cost of sales. SG&A (selling, general, and administrative) expenses fell 0.6%.

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Stock price movement

On September 22, 2016, H.B. Fuller stock fell 3.9% from its previous day’s closing price of $48.07. As a result, the stock fell below its 100-day moving average of $45.95 and closed at $44.18. The trading volumes were huge with nearly 1.3 million shares traded compared to a three-month average trading volume of just 200,000.

On the same day, the PowerShares DWA Basic Materials Momentum ETF (PYZ) rose 0.60%. PYZ has invested 2.5% of its holdings in H.B. Fuller as of September 22, 2016. As of that day, FUL stock has risen 21.1% YTD (year-to-date). Below are the YTD returns of H.B. Fuller’s peers as of September 22:

  • Sherwin-Williams (SHW): rose 7.7%
  • PPG Industries (PPG): rose 4.4%
  • RPM International (RPM): rose 20.4%
  • Valspar (VAL): rose 29%

Fiscal 2016 outlook

H.B. Fuller has revised its adjusted EPS for fiscal 2016 to $2.45–$2.50 from its earlier guidance of $2.45–$2.60 provided in its 2Q16 earnings report.

In this series, we’ll look at H.B. Fuller’s 3Q16 earnings in detail, breaking them down by segment. We’ll also look at analysts’ recommendations.

Let’s start by looking at H.B. Fuller’s 3Q16 revenue.

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