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H.B. Fuller Slips To Loss In Q4, Adj. EPS Miss Estimates; Sees Higher FY18 EPS

H.B. Fuller Co. (FUL), an adhesives provider, reported late Tuesday that its fourth-quarter net loss attributable to the company was $7.56 million or $0.15 per share, compared to net income of $39.13 million or $0.76 per share a year ago, which included an extra week.

Adjusted earnings per share in the fourth quarter of 2017, excluding the impact of the Royal transaction, were $0.75, compared to $0.74 a year ago. Adjusting for the extra week in 2016, adjusted earnings per share were up 9 percent as strong volume growth was offset by higher year-over-year raw material costs.

On average, four analysts polled by Thomson Reuters expected earnings of $0.85 per share. Analysts' estimates typically exclude special items.

Net revenue climbed 18 percent to $678.20 million from $574.91 million a year ago. Analysts expected revenues of $589.3 million for the quarter.

Adjusting for the Royal acquisition and the extra week in the fourth quarter of 2016, constant currency revenue growth was 12 percent, with organic revenue growth of 10 percent and organic volume growth of 8 percent.

Gross profit margin was 24.7 percent. Adjusted gross profit margin, excluding the impact of the Royal transaction, was 26.5 percent. The company said margins remained lower year-over-year due to continued increasing raw material costs.

Looking ahead, for fiscal 2018, the company expects adjusted earnings per share between $3.10 and $3.40. Adjusted EBITDA for fiscal year 2018 is expected to be approximately $465 million. Organic growth on proforma revenue is expected to be 6 to 7 percent.

In fiscal year 2017, reported earnings per share were $1.13 and adjusted earnings per share were $2.45.

Analysts expect earnings of $3.12 per share for the quarter.

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