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Fortune Brands Appoints SVP of Global Growth and Development

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Price movement

Fortune Brands Home & Security (FBHS) has a market cap of $8.5 billion. It rose 2.2% to close at $54.97 per share on December 5, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.2%, 4.3%, and 0.15%, respectively, on the same day.

FBHS is trading 1.3% below its 20-day moving average, 1.0% below its 50-day moving average, and 3.7% below its 200-day moving average.

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Related ETF and peers

The iShares Russell 3000 ETF (IWV) invests 0.04% of its holdings in Fortune Brands Home & Security. The YTD price movement of IWV was 10.8% on December 5.

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

  • Stanley Black & Decker (SWK) — $18.0 billion
  • Masco Corporation (MAS) — $10.2 billion
  • Spectrum Brands Holdings (SPB) — $6.9 billion

Latest news on FBHS

Tracey Belcourt has been appointed as Fortune Brands Home & Security’s senior vice president of global growth and development. The company reported, “Belcourt will partner with the executive team to identify, assess and execute opportunities to growth the business around the world in current segments, adjacencies, new segments and new geographies. She will also lead strategic planning and insights.”

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Fortune Brands’s performance in 3Q16

Fortune Brands Home & Security reported 3Q16 net sales of $1.3 billion, which is a rise of 3.2% over its net sales of $1.2 billion in 3Q15. Sales in the Plumbing, Doors, and Security segments rose 7.3%, 4.4%, and 6.3%, respectively, in 3Q16 as compared to 3Q15. The company’s operating margin rose 140 basis points in 3Q16 compared to 3Q15.

FBHS’s net income and EPS (earnings per share) rose to $123.4 million and $0.77, respectively, in 3Q16, compared to $107.5 million and $0.61, respectively, in 3Q15. It reported adjusted EPS of $0.80 in 3Q16, which is a rise of 25.0% over 3Q15.

Its cash and cash equivalents and inventories rose 16.8% and 1.2%, respectively, in 3Q16 compared to 4Q15.

Projections

Fortune Brands Home & Security (FBHS) made the following projections for fiscal 2016:

  • sales growth of 9.0%–10.0%
  • EPS before charges and gains of $2.72–$2.76
  • free cash flow of ~$400 million

Now let’s discuss Nike (NKE).

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