Fortune Brands Home & Security Q3 Adj. Profit Misses View; Lowers 2014 Outlook

(RTTNews) - Fortune Brands Home & Security, Inc. (FBHS) Wednesday reported third-quarter net loss of $21.1 million, compared to net income of $64.2 million in the year-ago period. Earnings per share from continuing operations were $0.54, up from $0.37 per share in the year-ago period.

Earnings before charges/gains for the quarter, or adjusted earnings, were $0.55 per share compared to $0.46 per share in the year-ago period. On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.56 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 5 percent to $1.10 billion from $1.05 billion in the year-ago period. Analysts expected revenues of $1.17 billion for the quarter.

Looking ahead to the fiscal 2014, the company now projects adjusted earnings in a range of $1.84 to $1.86 per share, down from the prior range of $1.88 to $1.96 per share. This compares to adjusted earnings of $1.50 per share in the prior year.

The company noted that the 2014 annual earnings outlook is based on a slower U.S. home products market growth assumption of 4 to 5 percent for the fourth quarter.

The company forecasts net sales for the year to increase approximately 8 percent, down from the prior range for net sales growth of 9 to 11 percent.

Analysts currently expect full-year earnings of $1.89 per share for the year on 6.5 percent growth in revenues to $4.43 billion.