Fortune Brands Innovations, Inc. Just Missed EPS By 47%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on Fortune Brands Innovations, Inc. (NYSE:FBIN), given that the company fell short of expectations when it released its quarterly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$1.1b, statutory earnings missed forecasts by an incredible 47%, coming in at just US$0.59 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Fortune Brands Innovations' 17 analysts is for revenues of US$4.65b in 2026. This would reflect a satisfactory 3.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 53% to US$4.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.69b and earnings per share (EPS) of US$4.25 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Fortune Brands Innovations

It might be a surprise to learn that the consensus price target was broadly unchanged at US$62.69, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Fortune Brands Innovations analyst has a price target of US$79.00 per share, while the most pessimistic values it at US$49.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fortune Brands Innovations' past performance and to peers in the same industry. For example, we noticed that Fortune Brands Innovations' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.8% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 5.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.2% per year. Although Fortune Brands Innovations' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Fortune Brands Innovations' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$62.69, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Fortune Brands Innovations analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Fortune Brands Innovations has 3 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.