Fortune Brands Innovations, Inc. (NYSE:FBIN) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Fortune Brands Innovations, Inc. (NYSE:FBIN) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$1.1b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were US$0.76, 2.9% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Fortune Brands Innovations

Following the latest results, Fortune Brands Innovations' 16 analysts are now forecasting revenues of US$4.88b in 2024. This would be an okay 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 28% to US$4.27. In the lead-up to this report, the analysts had been modelling revenues of US$4.85b and earnings per share (EPS) of US$4.30 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$85.47, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Fortune Brands Innovations at US$98.00 per share, while the most bearish prices it at US$72.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fortune Brands Innovations shareholders.

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 5.3% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 6.9% 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 5.5% per year. So while Fortune Brands Innovations' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Fortune Brands Innovations. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Fortune Brands Innovations going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Fortune Brands Innovations that 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.