Fortune Brands Home & Security, Inc. FBHS reported third-quarter 2020 earnings before charges/gains of $1.19 per share, surpassing the Zacks Consensus Estimate of $1.06 by 12.3%. On a year-over-year basis, the bottom line increased 25.3% due to sales growth.Fortune Brands’ net sales were $1,652.1 million, increasing 13% from the year-ago figure. The improvement was driven by solid performance across all of its segments. The top line beat the consensus estimate of $1,528 million by 8.1%.Segmental DetailsCabinets’ net sales grew 11% year over year to $654.8 million. Results were driven by continued solid demand for value products.Plumbing net sales increased 15% year over year to $590.6 million. Results were driven by impressive sales performance in the United States and China.Doors & Security’s net sales increased 14% to $406.7 million, on the back of higher sales of doors, decking and security products.Fortune Brands Home Security, Inc. Price, Consensus and EPS Surprise Fortune Brands Home Security, Inc. price-consensus-eps-surprise-chart | Fortune Brands Home Security, Inc. QuoteCosts & ExpensesIn the third quarter, Fortune Brands’ cost of sales increased 15% year over year to $1,071.5 million. It represented 64.9% of net sales compared with 64.1% in the year-ago quarter. Selling, general and administrative expenses increased 5% to $328.3 million, and represented 19.9% of the net sales compared with 21.3% a year ago.Operating income before charges/gains increased 20% to $244.2 million. Operating margin before charges/gains climbed 90 basis points to 14.8%. Interest expenses decreased 15% to $20.1 million.Balance SheetExiting the third quarter, Fortune Brands’ cash and cash equivalents were $464.5 million, up 19.7% from $387.9 million at the end of 2019. Its long-term debt declined 7.1% to $2,086.5 million sequentially.In the first nine months of 2020, net cash generated by operating activities was $506.8 million compared with $353.8 million in the year-ago period. Capital expenditure amounted to $66.2 million, down from $82.4 million.OutlookFor 2020, Fortune Brands anticipates net sales to increase 4-5% over the previous year. Earnings before charges/gains are estimated to be $4.03-$4.11 per share. Also, it anticipates to generate free cash flow of $590-$620 million.Zacks Rank & Other Stocks to ConsiderThe company currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks are Kaman Corporation KAMN, Dover Corporation DOV and IDEX Corporation IEX. All these companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Kaman delivered a positive earnings surprise of 30.42%, on average, in the trailing four quarters.Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.IDEX delivered a positive earnings surprise of 6.80%, on average, in the trailing four quarters.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot stocks we're targeting >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV): Free Stock Analysis Report Kaman Corporation (KAMN): Free Stock Analysis Report Fortune Brands Home Security, Inc. (FBHS): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research