Earnings Alerts

Masco Corp (MAS) Earnings: 2Q Net Sales Align with Estimates Amid Tough Market Conditions

  • Masco’s 2Q net sales reached $2.09 billion, a slight decline of 1.7% year-over-year (y/y), aligning with the $2.1 billion estimate.
  • Plumbing net sales increased by 2.3% y/y to $1.25 billion, surpassing the estimate of $1.22 billion.
  • Decorative architectural products net sales dropped by 7.1% y/y to $838 million, below the $888.6 million estimate.
  • Adjusted operating margin improved to 19.1%, compared to 19% y/y and above the 18.4% estimate.
  • Plumbing products adjusted operating margin slightly decreased to 19.9% from 20% y/y, but still above the 19.5% estimate.
  • Decorative architectural products adjusted operating margin rose to 20.8%, compared to 20% y/y and higher than the 19.5% estimate.
  • Gross margin increased to 37.5% from 36.2% y/y, beating the 36.4% estimate.
  • Adjusted gross margin also improved to 37.6% from 36.2% y/y, exceeding the 36.4% estimate.
  • Adjusted Ebitda slightly decreased by 0.5% y/y to $437 million, but surpassed the $426.5 million estimate.
  • General corporate expense rose to $24.0 million compared to $21 million y/y, and higher than the $22.1 million estimate.
  • Masco anticipates 2024 adjusted earnings per share to be between $4.05 and $4.20, revising the previous range of $4.00 to $4.25.
  • CEO Keith Allman highlighted solid results and shareholder value in a challenging environment.
  • Expectations for the second half of the year include ongoing demand headwinds due to tough market conditions.
  • Current analyst ratings include 11 buys, 11 holds, and 1 sell.

Masco Corp on Smartkarma

Analysts on Smartkarma, such as Baptista Research, are closely monitoring Masco Corporation’s performance. In their report titled “Masco Corporation: Will Its Margins Remain Stable Despite Seasonal Fluctuations? – Major Drivers,” they highlighted the company’s strong start to the year with expansion in operating profit margin and EPS growth. This positive performance was attributed to improved operational efficiencies and a solid repair and remodel product portfolio. However, despite these strengths, Masco’s top-line figures saw a 3% decrease in the quarter, aligning with company expectations.

In another report by Baptista Research, “Masco Corporation: Will The Continued Investments in Key Growth Areas Yield Results In 2024? – Major Drivers,” analysts discussed Masco’s robust fourth quarter results amidst a softening home improvement and DIY market. Despite a 2% decline in top-line results, the company leveraged pricing disciplines, cost reductions, and operational efficiencies to enhance margins. Despite volume decreases, Masco reported a $38 million increase in operating profit, driven by an improved price/commodity relationship and efficiency efforts across its operations.


A look at Masco Corp Smart Scores

FactorScoreMagnitude
Value0
Dividend3
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE2.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts are cautiously optimistic about the long-term outlook for Masco Corp, a company that manufactures and sells home improvement and building products. Utilizing the Smartkarma Smart Scores, Masco Corp scored well on Growth with a rating of 4 and momentum with a rating of 3. This indicates potential for strong future performance and continued market interest in the company’s offerings.

Despite facing challenges in the Value and Resilience categories with scores of 0 and 2 respectively, Masco Corp holds a solid Dividend score of 3, providing some stability for investors. With a diverse range of products including faucets, kitchen and bath cabinets, and builders’ hardware products, Masco Corp‘s ability to adapt to changing market conditions will be key in its long-term success.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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