Overview

• Adhesives maker's fiscal Q2 net revenue rose 5.8%, beating analyst expectations

• Adjusted EPS for fiscal Q2 increased 19% and beat analyst expectations

• Company repurchased 750,000 shares and raised midpoint of full-year guidance

Outlook

• H.B. Fuller raises midpoint of full-year adjusted EBITDA guidance to $650 mln-$675 mln

• Company lifts midpoint of full-year adjusted EPS guidance to $4.60-$4.90

• H.B. Fuller expects Q3 adjusted EBITDA of $180 mln-$190 mln

Result Drivers

• PRICING EXECUTION - Co said pricing actions increased net revenue and drove margin improvement

• RESTRUCTURING SAVINGS - Co said restructuring initiatives contributed to higher gross margin and adjusted EBITDA

• FOREIGN CURRENCY - Co said foreign currency translation contributed 3.1% to net revenue growth

Company press release: ID:nBw8Jl01ba

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$950 mln	$924.79 mln (7 Analysts)
Q2 Adjusted EPS	Beat	$1.41	$1.40 (7 Analysts)
Q2 Adjusted Net Income	Beat	$78 mln	$76.76 mln (6 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for H.B. Fuller Company is $72.00, about 14.1% above its June 23 closing price of $63.12

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.