Fortune Brands Innovations Likely to Remain in 'Weak Competitive Position' After Expected Q1 Miss, Oppenheimer Says

MT Newswires Live05-05 23:28

Fortune Brands Innovations (FBIN) is likely to remain in a "weak competitive position" for at least several quarters following an expected miss on Q1 earnings, Oppenheimer said in a Tuesday note.

The company's water business lost market share in Q1 and could continue throughout the year amid a management transition, the investment firm said. Other Q1 headwinds included weak single-family housing starts and weather issues that weighed on its outdoor business, Oppenheimer added.

Fortune Brands Innovations has missed Wall Street EPS expectations for two consecutive quarters and its operating margin is down 350 basis points from 2019, the brokerage noted.

"While these miscues can be put on the old management team, they are factors the new leadership will need to handle," Oppenheimer said

Fortune Brands Innovations is scheduled to release its Q1 results on Thursday.

Oppenheimer maintained its perform rating on Fortune Brands Innovations.

Price: 38.54, Change: +0.44, Percent Change: +1.15

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