Stock News Summary: Fuller Company (NYSE:FUL)

Fuller Company (NYSE:FUL) changed -7.11% to recent value of $52.89. The stock transacted 1345365 shares during most recent day however it has an average volume of 326.49K shares. It spotted trading -11.23% off 52-week high price. On the other end, the stock has been noted 13.45% away from the low price over the last 52-weeks. FUL has a gross margin of 26.60%. Its earnings per share (EPS) expected to touch remained -53.40% for this year while earning per share for the next 5-years is expected to reach at 22.96%.

Fuller Company (NYSE:FUL) reported financial results for the third quarter that ended Sept. 1, 2018.

Third Quarter 2018 Highlights:

Net revenue of $770 million increased 37 percent compared with the third quarter of 2017, including the Royal business which was acquired in October, 2017. Organic revenue increased approximately 5 percent;

Net income of $38 million or $0.72 per diluted share, increased compared with $25 million, or $0.49 in the third quarter of 2017; adjusted net income of $45 million, or $0.86 per diluted share, increased 34 percent compared with $33 million, or $0.65 in the third quarter of 2017;

Adjusted EBITDA of $120 million increased 63 percent compared with the third quarter of 2017; adjusted EBITDA margin increased to 15.6 percent from 13.1 percent in the same period last year as a result of the Royal acquisition and effective management of our legacy business;

The Royal integration continues to progress well with approximately $4 million of incremental cost synergies in the third quarter. On track to realize $15 million of cost synergies in fiscal 2018 and $35 million of savings by 2020, as previously communicated;

Cash flow from operations of $84 million increased compared with $38 million in the same period last year. Debt pay down in the quarter was $41 million. On track to meet our $170 million debt reduction goal for the 2018 fiscal year.

Balance Sheet and Cash Flow:

At the end of the third quarter of 2018, the Company had cash on hand of $150 million and total debt equal to $2,364 million, of which approximately 70 percent had a fixed interest rate. This compares to cash and debt levels equal to $129 million and $2,405 million, respectively, in the second quarter of 2018. Cash flow from operations in the third quarter was $84 million compared to $38 million for the same period in 2017, reflecting the increased profitability of the business. Capital expenditures were $13 million in the third quarter of 2018, compared with $8 million in the same period last year.


Fiscal 2018 Guidance:

H.B. Fuller is updating its guidance for the 2018 fiscal year. The company is adjusting EPS guidance by $0.10 per share to reflect unfavorable movement in foreign currency exchange rates and narrowing the EPS range to reflect current business conditions. The company now anticipates adjusted EPS of $3.05 to $3.20, compared with the previous range of $3.15 to $3.40; and adjusted EBITDA of $455 to $470 million, compared with previous guidance of approximately $470 million. Revenue growth for the fourth quarter is expected to be approximately 3 percent when compared to 2017 on a proforma basis. The company’s core tax rate, excluding the impact of discrete items, is unchanged and is expected to be between 25 and 27 percent. H.B. Fuller expects to invest a total of approximately $70 million in capital items in 2018.

This guidance excludes approximately $20 to $25 million of pre-tax expenses required to integrate the Royal business and other businesses acquired in 2017, and between $7 and $8 million of pre-tax expenses related to Project ONE ERP development costs. This guidance also excludes the discrete tax benefit of $35.6 million related to Tax Reform that was recorded in the first quarter, as well as any future discrete tax items. A complete reconciliation of the non-GAAP financial information contained in our 2018 guidance is not being provided in accordance with the “unreasonable efforts” exception of Item 10(e)(1)(i)(B) of Regulation S-K of the Securities and Exchange Commission.

The company has 50.74M of outstanding shares and 50.3M shares were floated in the market. According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -7.01% from the mean of 20 days, -7.12% from mean of 50 days SMA and performed -1.03% from mean of 200 days price. Company’s performance for the week was -9.53%, -9.12% for month and YTD performance remained -1.82%.

Category – Hot Stocks

Mark Wilbanks studied a business degree majoring in finance and security analysis. He has a deep understanding of both technical and fundamental forms of analysis, he deeply believes that it makes a lot more sense for average investors to understand fundamental analysis, which he believes anyone can learn. Mark has over 10 years of experience as a professional journalist, writer and an editor. He holds a bachelor’s degree in International Business from University of Melbourne. He writes articles about hot stocks, dividend growth investing, options trading, investment decisions, stock selection, portfolio management, and passive income generation. Mark primarily reports on Hot Stocks category.

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