H.B. Fuller Company Just Recorded A 5.0% EPS Beat: Here's What Analysts Are Forecasting Next

The first-quarter results for H.B. Fuller Company (NYSE:FUL) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of US$810m were in line with what the analysts predicted, H.B. Fuller surprised by delivering a statutory profit of US$0.55 per share, modestly greater than expected. 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 H.B. Fuller

Taking into account the latest results, the most recent consensus for H.B. Fuller from six analysts is for revenues of US$3.63b in 2024. If met, it would imply an okay 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 36% to US$3.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.63b and earnings per share (EPS) of US$3.62 in 2024. So the consensus seems to have become somewhat more optimistic on H.B. Fuller's earnings potential following these results.

There's been no major changes to the consensus price target of US$88.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on H.B. Fuller, with the most bullish analyst valuing it at US$115 and the most bearish at US$70.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that H.B. Fuller's revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2024 being well below the historical 6.0% p.a. growth over the last five years. Compare this to the 126 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.5% per year. So it's pretty clear that, while H.B. Fuller's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around H.B. Fuller's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$88.83, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for H.B. Fuller going out to 2026, and you can see them free on our platform here..

Even so, be aware that H.B. Fuller is showing 1 warning sign in our investment analysis , you should know about...

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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.