Fortune Brands Innovations (FBIN) stock is soaring 5.57% in pre-market trading on Friday, despite reporting lower-than-expected fiscal Q3 earnings and a reduced full-year outlook. The company, which specializes in home and security products, seems to be defying analyst expectations and market trends with this significant upward movement.
According to the company's late Thursday report, Fortune Brands posted adjusted earnings of $1.09 per diluted share for the third quarter, down from $1.16 a year earlier and below the FactSet analyst consensus of $1.11. Net sales for the quarter ended September 27 were $1.15 billion, slightly lower than the $1.16 billion reported in the same period last year and missing the $1.18 billion analyst expectation. Furthermore, the company lowered its 2025 adjusted EPS guidance to a range of $3.70 to $3.80, down from the previous $3.75 to $3.95 range.
Despite these seemingly negative factors, investors appear to be focusing on potential positives or overlooked aspects of the report. The stock's surge comes in the face of several analyst price target cuts, including Barclays lowering its target to $65 from $68, Truist Securities reducing its target to $55 from $60, and UBS adjusting its target to $79 from $83. Notably, many analysts are maintaining their positive or neutral stances on the stock, with Barclays and RBC Capital keeping their Buy ratings, and Oppenheimer maintaining a Hold rating. This suggests that while short-term expectations have been tempered, there may be underlying confidence in the company's long-term prospects or current valuation.
Comments