Masco Corp. Earnings Cheat Sheet: Back to a Profit

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S&P 500 (NYSE:SPY) component Masco Corporation (NYSE:MAS) reported its results for the first quarter. Masco manufactures and installs building and home improvement products including faucets, cabinets, architectural coatings, and windows.

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Masco Earnings Cheat Sheet for the First Quarter

Results: Reported a profit of $33 million (9 cents per diluted share) in the quarter. Masco Corporation had a net loss of $46 million or a loss 13 cents per share in the year-earlier quarter.

Revenue: Rose 7% to $1.88 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Masco Corporation reported adjuted net income of 5 cents a share. By that measure, the company beat the mean estimate of breaking even. It beat the average revenue estimate of $1.83 billion.

Quoting Management: “Sales in the quarter were positively impacted by volume growth in both our repair and remodel and new home construction channels. This growth was driven by share gains, new product introductions and positive housing dynamics,” said Masco’s CEO Tim Wadhams. “Our results this quarter include solid improvement in margins and earnings per share, reflecting our focus on total cost productivity and the positive effects of our operating leverage. In addition, we took steps to strengthen our balance sheet by issuing debt of $400 million at an attractive rate to partially prefund our July 2012 debt maturity.”

Key Stats:

The company reported a profit last quarter after being in the red the prior quarter. The company booked a net loss of $36 million, or 10 cents per share, in the third quarter of the last fiscal year.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 10 cents per share to 8 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 32 cents a share to 22 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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