By Connor Hart

H.B. Fuller's profit and sales fell in its fiscal first quarter, hurt by weak overall market demand conditions, but results topped Wall Street's estimates, sending the stock higher.

The St. Paul, Minn., adhesives manufacturer on Wednesday said profit fell to $13.2 million, or 24 cents a share, for its three months ended March 1, from $31 million, or 55 cents a share, a year earlier.

Adjusted per-share earnings were 54 cents, topping the 49 cents that analysts surveyed by FactSet expected.

Revenue fell 2.7%, to $788.7 million but came in ahead of the $769 million that analysts modeled.

On an organic basis, sales increased 1.9% year over year in the first quarter. The company attributed the increase to higher volumes and prices, which grew 1.7% and 0.2%, respectively, from last year.

"I am encouraged by our first quarter financial performance and positive organic sales growth," Chief Executive Celeste Mastin said. "Despite weak overall market demand conditions, we remain focused on pricing discipline, market share gains, and effectively managing our cost structure."

Shares rose 7.3% to $58.30 in after-hours trading.

Looking forward, Martin said the company will remain cautious, citing weak overall market demand and unpredictable global geopolitical conditions.

For its fiscal second quarter, H.B. Fuller guided for adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--of $150 million to $160 million. Analysts polled by FactSet expect adjusted Ebitda of $155.1 million.

The company backed its outlook for fiscal 2024, which calls for revenue to fall 2% to 4%, hurt in part by the recent sale of its flooring business. Analysts forecast sales of $3.46 billion, representing a 3.1% decrease from last year. It continues to expect adjusted per-share earnings of $3.90 to $4.20, compared with analyst views for $3.97.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 26, 2025 16:37 ET (20:37 GMT)

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