Masco (MAS) Tops Q1 Earnings & Sales, Cabinet Sales Down
Zacks Investment Research | Apr 24, 2017 11:05PM ET
Masco Corporation’s (NYSE:MAS) adjusted earnings of 41 cents per share in the first quarter of 2017 surpassed the Zacks Consensus Estimate of 35 cents by 17.1%. Adjusted earnings increased 28.1% year over year.
Masco’s net sales of $1.78 billion beat the Zacks Consensus Estimate of $1.75 billion by 1.7%. Revenues also grew 3% year over year on the back of strong sales growth in Plumbing and Decorative Architectural Products.
North American sales increased 4% year over year to $1.41 billion. But international sales declined 1% (up 5% in local currency) to $366 million.
Margins
Adjusted gross profit grew 7.0% to $610 million, while adjusted gross margin improved to 34.3%.
Adjusted operating profit increased 7.6% to $255 million.
Adjusted operating margin increased 60 basis points (bps) to 14.4%. As a percentage of net sales, selling, general and administrative expenses (adjusted) increased 60 bps to 20.0%.
Adjusted operating margin rose 100 bps to 17.1% in North America and was down 180 bps to 10.9% in international markets.
Segmental Analysis
Cabinets and Related Products: Segmental revenues of $231 million declined 2% year over year, as the company exited from lower margin business in the builder channel.
The company reported adjusted operating profit of $18 million (down 28% from the year-ago figure). Adjusted operating margin was 7.8% in the quarter, down 280 bps from the year-ago quarter.
Plumbing Products: The segment recorded revenues of $863 million, up 6%. Excluding the impact of foreign currency translation, revenues increased 8% on growth in North America and internationally.
Adjusted operating margin of 18.1% increased 200 bps year over year as well.
Decorative Architectural Products: Segmental revenues of $505 million were up 2%, on growth from builders’ hardware and Behr’s pro initiative.
However, operating margin decreased 130 bps to 20.0%.
Windows and Other Specialty Products: Segmental revenues totaled $178 million, remaining flat year over year. Excluding the impact of foreign currency translation, net sales increased 3%, led by both the international and North American windows businesses.
Operating margin also increased 170 bps to 3.4%.
Masco Corporation Price, Consensus and EPS Surprise
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.