H.B. Fuller Company FUL has issued unaudited preliminary financial results for fiscal 2024. These preliminary results are estimates and subject to the conclusion of the company's fiscal-year financial audit.

FUL now expects fiscal 2024 net revenues to be roughly $3.57 billion, adjusted earnings per share to be about $3.84 and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be roughly $594 million compared with the previous guidance of adjusted EBITDA between $610 million and $620 million, which was communicated on Sept. 25, 2024. In addition, the company expects to generate around $300 million in cash flow from operations for the year.

Fourth-quarter net revenues and earnings were hurt by weaker-than-expected conditions and delayed orders, particularly in consumer product goods and packaging-related end markets, as well as durable goods distribution. Also, delayed customer order patterns pushed price increases into fiscal 2025, while increasing raw material costs, notably in Hygiene, Health and Consumable (HHC) Adhesives, adversely impacted adjusted EBITDA.

Shares of H.B. Fuller have lost 20.3% in the past year compared with a 19.7% decline in the industry.

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FUL’s Zacks Rank & Key Picks

H.B. Fuller currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Sylvamo Corporation SLVM and Silvercorp Metals Inc. SVM. 

Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 158.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

Sylvamo, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.7%, on average. SLVM’s shares have rallied 62.5% over the past year. 

Silvercorp, currently carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters and being in-line once, with the average earnings surprise being 16.5%. SVM has gained around 23.5% in the past year.

 

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