Upcoming AWS Coverage on Olin

LONDON, UK / ACCESSWIRE / April 11, 2017 / Active Wall St. announces its post-earnings coverage on H.B. Fuller Co. (NYSE: FUL). The Company disclosed its financial results for the first quarter fiscal 2017 (Q1 FY17) on March 29, 2017. The Saint Paul, Minnesota-based Company reported a 6.1% and 12.0% y-o-y growth in its net revenue and adjusted diluted EPS; outperforming market consensus estimates. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of H.B. Fuller's competitors within the Specialty Chemicals space, Olin Corp. (NYSE: OLN), is estimated to report earnings on May 01, 2017. AWS will be initiating a research report on Olin following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on FUL; touching on OLN. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

During the three months ended on March 04, 2017, H.B. Fuller reported net revenue of $503.32 million compared to $474.33 million recorded at the end of Q1 FY16. Net revenue numbers topped market expectations of $486.75 million. The Company attributed the growth in quarterly net revenue to higher sales volume and acquisitions, which was offset by negative mix and negative foreign currency translation.

The global adhesives maker reported net income attributable to H.B. Fuller of $14.80 million, or $0.29 per diluted share, in Q1 FY17 compared to $18.92 million, or $0.37 per diluted share, in the prior year's same period. Meanwhile, the Company's adjusted net income attributable to H.B. Fuller increased to $24.89 million, or $0.48 per diluted share, in Q1 FY17 from $21.80 million, or $0.43 per diluted share, in the past year's comparable quarter. Wall Street had expected the Company to report adjusted net income of $0.45 per diluted share.

Operating Metrics

In the reported quarter, H.B. Fuller's adjusted gross profit came in at $144.15 million, or 28.6% of net revenue, compared to $139.50 million, or 29.4% of net revenue, in the year ago same period. The Company's segment operating income for Q1 FY17 stood at $26.08 million, compared to $37.84 million in Q1 FY16. Furthermore, the adjusted EBITDA margin for the reported quarter was $58.95 million, or 11.7% of net revenues, versus $58.69 million, or 12.4% of net revenues, in Q1 FY16.

Segment Performance

The Company's Americas Adhesives segment's net revenue grew from $183.32 million in Q1 FY16 to $193.16 million in the reported quarter. However, the segment's operating income fell to $21.03 million in Q1 FY17 from $26.26 million in Q1 FY16.

During Q1 FY17, Europe India Middle East Africa (EIMEA) segment reported net revenue of $124.04 million, marginally below $124.29 million recorded in the prior year's same quarter. Moreover, the segment's operating income decline to $1.80 million in Q1 FY17 from $6.16 million in Q1 FY16.

H.B. Fuller's Asia/Pacific segment's revenues were $62.65 million in Q1 FY17, up from $53.86 million in Q1 FY16. Meanwhile, the segment's operating income fell to $1.88 million in Q1 FY17 from $3.75 million in the previous year's same quarter.

Construction Products segment's sales dropped from $60.07 million in Q1 FY16 to $57.05 million in Q1 FY17. Additionally, the segment reported operating loss of $0.68 million in Q1 FY17 versus operating income of $0.79 million in the year-ago corresponding period.

For Q1 FY17, Engineering Adhesives segment reported net revenue of $66.43 million, rising from $52.78 million in Q1 FY16. Furthermore, the segment's operating income surged to $2.06 million in Q1 FY17 from $0.88 million in the last year's comparable quarter.

Cash Flow & Balance

During Q1 FY17, H.B. Fuller's net cash flow provided by operating activities declined to $16.46 million from $42.56 million in the year ago same period. At the close of books on March 04, 2017, H.B. Fuller had cash and cash equivalents balance of $116.52 million versus $142.25 million at the close of books on December 03, 2016. Additionally, the Company's long-term debt increased during the reported quarter to stand at $757.66 million as on March 04, 2017, from $585.76 million as on December 03, 2016.

Dividend and Buyback

In a separate press release on April 06, 2017, H.B. Fuller's Board of Directors announced a 7% hike in the regular quarterly cash dividend from $0.14 per share of common stock to $0.15 per share of common stock. The dividend is payable on May 04, 2017 to shareholders of record at the close of business on April 20, 2017.

The Company's management also authorized a $200 million share repurchase program for a period of up to five years.

Earnings Guidance

For full year FY17, H.B. Fuller has affirmed adjusted EPS guidance in the range of $2.57 to $2.77. Furthermore, the Company raised its adjusted EBITDA guidance to $300 million.

Stock Performance

On Monday, April 10, 2017, the stock closed the trading session at $51.01, slightly up 0.69% from its previous closing price of $50.66. A total volume of 405.56 thousand shares have exchanged hands, which was higher than the 3-month average volume of 308.34 thousand shares. H.B. Fuller's stock price surged 2.68% in the last three months, 12.79% in the past six months, and 20.23% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 5.89%. The stock is trading at a PE ratio of 21.84 and has a dividend yield of 1.10%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street