Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Fortune Brands Home & Security (NYS: FBHS) jumped 10% today after releasing third-quarter earnings.
So what: Revenue rose 7% in the quarter to $909.1 million, which was $10.3 million ahead of estimates. On the bottom line, net income jumped from $2.2 million a year ago to $40 million, or $0.24 per share. On an adjusted basis, earnings were $0.29 per share, ahead of estimates of $0.25 from analysts.
Now what: The improved housing market boosted sales: Kitchen and bath cabinetry rose 6% in the quarter, and plumbing and accessories increased 12%. Management had so much confidence in the results that it increased its full-year EPS outlook to a range of $0.86 to $0.88, above the consensus estimate of $0.83. The stronger earnings are great, but the stock is still too expensive for my taste, so I'll sit this jump out today.
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The article Why Fortune Brands Home & Security's Shares Jumped originally appeared on Fool.com.
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