H.B. Fuller (NYSE: FUL) saw its stock price plummet 5.05% in Friday's intraday trading session following the release of disappointing first-quarter 2025 financial results and subsequent analyst downgrades. The adhesive manufacturing and specialty chemical company's shares dropped to $55.45, reflecting growing concerns about its performance amid macroeconomic uncertainties.
The company reported first-quarter fiscal 2025 earnings that fell short of expectations. While revenue of $788.7 million beat analyst estimates by 2.6%, it still represented a 2.7% decline from the same period last year. More alarmingly, net income plummeted 57% to $13.2 million, resulting in earnings per share (EPS) of $0.24, down significantly from $0.57 in Q1 2024 and missing analyst estimates by 40%. The profit margin also contracted to 1.7% from 3.8% in the previous year.
In response to these results and the challenging macroeconomic environment, several analysts have revised their outlook on H.B. Fuller. Notably, Baird cut its price target to $60 from $73, citing "enormous near-term uncertainty" in the operating environment. Similarly, JP Morgan maintained its Underweight rating on the stock. These actions have likely contributed to the selling pressure on H.B. Fuller's shares, which have now fallen over 15% year-to-date.
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