H.B. Fuller (NYSE: FUL) saw its stock price surge 6.34% in after-hours trading on Wednesday following the release of its second-quarter earnings report, which exceeded analyst expectations and included an upward revision of the company's full-year guidance.
The adhesives manufacturer reported adjusted earnings per share of $1.18 for the second quarter, surpassing the analyst consensus estimate of $1.08. This represents a 5.36% increase from the $1.12 per share reported in the same period last year. While quarterly revenue of $898.095 million slightly missed the analyst estimate of $899.955 million, the company's profitability metrics showed significant improvement.
H.B. Fuller's strong performance was attributed to favorable pricing, cost-saving initiatives, and the net benefits from acquisitions and divestitures. The company's adjusted EBITDA for the quarter reached $166 million, up 5% year-over-year, with an adjusted EBITDA margin of 18.4%, representing a 130 basis point increase. In light of these results, H.B. Fuller raised its full-year outlook, now expecting adjusted earnings per share in the range of $4.10 to $4.30, up from the previous guidance of $3.90 to $4.20. The company also narrowed its revenue forecast, projecting a 2% to 3% decline for the fiscal year 2025, compared to the earlier estimate of a 2% to 4% decrease.