Fortune Brands Home & Security, Inc. FBHS reported fourth-quarter 2020 earnings before charges/gains of $1.25 per share, surpassing the Zacks Consensus Estimate of $1.16 by 7.8%. On a year-over-year basis, the bottom line increased 25% on the back of sales growth.In 2020, the company’s earnings before charges/gains came in at $4.19, higher than $3.60 in the previous year.In the fourth quarter, Fortune Brands’ net sales were $1,659.7 million, increasing 13% from the year-ago figure. The improvement was driven by solid performance across all of its segments. Also, the top line beat the consensus estimate of $1,618 million by 2.6%.In 2020, the company’s net sales were $6,090.3 million, reflecting an increase of 6% year over year.Segmental DetailsQuarterly net sales for Cabinets grew 11% year over year to $655.5 million. Results were driven by continued solid demand for the company’s products.Plumbing net sales increased 16% year over year to $637.7 million. Results were driven by impressive performance across the business.Outdoors & Security’s net sales increased 11% to $366.5 million on the back of double-digit sales growth for composite decking and doors products.Costs & ExpensesIn the fourth quarter, Fortune Brands’ cost of sales increased 12% year over year to $1,052 million. It represented 63.4% of net sales compared with 63.8% in the year-ago quarter. Selling, general and administrative expenses increased 17% to $364.2 million, and represented 21.9% of the net sales compared with 21.2% a year ago.Operating income before charges/gains increased 19% to $246.4 million. Operating margin before charges/gains climbed 70 basis points to 14.8%. Interest expenses decreased 13% to $19.5 million.Balance SheetExiting 2020, Fortune Brands’ cash and cash equivalents were $419.1 million, up 8% from $387.9 million at the end of 2019. Its long-term debt increased 23.3% to $2,572.2 million sequentially.In 2020, net cash generated by operating activities was $825.7 million compared with $637.2 million a year ago. Capital expenditure amounted to $150.5 million, up from $131.8 million.OutlookFor 2021, Fortune Brands anticipates sales to increase 12.5-14.5% from the previous year. Earnings before charges/gains are estimated to be $4.85-$5.05 per share. Also, it anticipates to generate free cash flow of $600-$650 million.Fortune Brands Home & Security, Inc. Price and EPS Surprise Fortune Brands Home & Security, Inc. price-eps-surprise | Fortune Brands Home & Security, Inc. QuoteZacks Rank & Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks are Franklin Electric Co., Inc. FELE, SPX FLOW, Inc. FLOW and Danaher Corporation DHR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Franklin Electric delivered a positive earnings surprise of 12.82%, on average, in the trailing four quarters.SPX FLOW delivered a positive earnings surprise of 146.55%, on average, in the trailing four quarters.Danaher delivered a positive earnings surprise of 19.86%, on average, in the trailing four quarters.These Stocks Are Poised to Soar Past the PandemicThe COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.See the 5 high-tech stocks now>>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 Danaher Corporation (DHR): Free Stock Analysis Report Franklin Electric Co., Inc. (FELE): Free Stock Analysis Report Fortune Brands Home & Security, Inc. (FBHS): Get Free Report SPX FLOW, Inc. (FLOW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research