Key Takeaways
- Adhesive maker H.B. Fuller posted fiscal first-quarter earnings that exceeded analysts’ expectations.
- Sales and adjusted profits each fell year-over-year, but not as much as analysts had forecast.
- CEO Celeste Mastin said the company continues to see “weak overall market demand.”
Adhesive maker H.B. Fuller (FUL) posted fiscal first-quarter earnings that exceeded analysts’ expectations.
H.B. Fuller generated $788.66 million in revenue for the quarter, down from $810.42 million in the same quarter a year ago, but about $20 million above the analyst consensus compiled by Visible Alpha. The company’s adjusted earnings per share came in at 54 cents, also topping estimates.
“Despite weak overall market demand conditions, we remain focused on pricing discipline, market share gains, and effectively managing our cost structure,” CEO Celeste Mastin said in a statement.
Mastin said the company sees the weak demand continuing, but that H.B. Fuller remains confident it can grow organic sales and improve its profit margin this year.
H.B. Fuller maintained its projections for the full year, with revenue expected to grow 1% to 2% after accounting for the divestiture of one of its segments, and adjusted EPS projected to rise 2% to 9%.
Shares of the adhesive maker jumped over 6% in early trading Thursday before paring back most of their early gains. They’ve lost nearly one-third of their value in the last 12 months.
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