H.B. Fuller Company (NYSE:FUL) stock rose 0.21% (As on September 26, 11:28:18 AM UTC-4, Source: Google Finance) after the company reported third quarter earnings that fell short of analyst expectations and lowered its full-year guidance. Organic revenue increased slightly year-on-year, with pricing adjustments reducing organic revenue by 2.6% and volume increasing organic revenue by 3.0%. Foreign currency translation reduced net revenue by 1.5% and acquisitions increased net revenue by 3.0%. Adjusted gross profit was $279 million. Adjusted gross profit margin of 30.4% increased 40 basis points year-on-year. Volume leverage, restructuring savings, and the benefit from acquisitions primarily drove the year-on-year increase in adjusted gross profit. Adjusted net income attributable to H.B. Fuller for the third quarter of fiscal 2024 was $64 million. Adjusted EBITDA in the third quarter of fiscal 2024 was $165 million, up 6% year-on-year, driven principally by volume growth, restructuring savings, and benefits from recent acquisitions. Adjusted EBITDA margin increased 70 basis points year-on-year to 18.0%. The volume growth during the quarter was impacted by slowing market demand in certain durable goods markets in EA.

FUL in the third quarter of FY 24 has reported the adjusted earnings per share of $1.13, missing the analysts’ estimates for the adjusted earnings per share of $1.23. The company had reported the adjusted revenue growth of 1.9 percent to $918 million in the third quarter of FY 24, missing the analysts’ estimates for revenue of $944.04 million. Net debt at the end of the third quarter of fiscal 2024 was $1,890 million, up $100 million year-on-year. The ratio of net debt-to-adjusted EBITDA was 3.1X, consistent with the second quarter. Net working capital in the third quarter of fiscal 2024 decreased $64 million year-on-year. As a percentage of annualized net revenue, net working capital decreased 200 basis points year-on-year to 16.1%. The adjusted SG&A was $164 million versus $159 million in the third quarter of fiscal 2023.

H.B. Fuller also cut its fiscal 2024 outlook, now forecasting adjusted EPS of $4.10-$4.20, down from its previous guidance of $4.37. The company cited “year-to-date performance and current macroeconomic conditions” for the reduced forecast. For the full year, H.B. Fuller now expects net revenue growth of approximately 2%, with organic revenue flat YoY. Adjusted EBITDA is projected to be $610-$620 million, representing 5-7% growth. Operating cash flow is now expected to be between $325 million and $350 million.