H.B. Fuller Shares Plunge 10% on Downgraded Guidance Following Disappointing Q3 Results

ST. PAUL, Minn. – H.B. Fuller Co. reported third-quarter earnings that did not meet analyst expectations, resulting in a significant decline in shares, which fell by 10.75% in after-hours trading on Wednesday.

The adhesives manufacturer announced adjusted earnings per share of $1.13 for the quarter ending August 31, falling short of the consensus estimate of $1.23. Revenue was recorded at $918 million, which was also below analysts’ projections of $944.04 million.

Additionally, H.B. Fuller revised its fiscal 2024 outlook, now anticipating adjusted EPS between $4.10 and $4.20, down from the previous forecast of $4.37. The company attributed this adjustment to "year-to-date performance and current macroeconomic conditions."

CEO Celeste Mastin stated, "While this quarter’s volume growth was at the low end of our expectations, we have a clear and focused strategy and a highly engaged team that is well equipped to execute and drive business success."

For the entire year, H.B. Fuller now predicts net revenue growth of approximately 2%, with organic revenue remaining flat year-over-year. Adjusted EBITDA is expected to be between $610 million and $620 million, reflecting a growth rate of 5-7%.

Despite facing challenges, H.B. Fuller pointed out some positives, including a 70 basis point year-over-year increase in adjusted EBITDA margin, reaching 18.0% in Q3. The company also emphasized that it remains on track to meet its long-term margin and organic growth targets.