TSX runs higher on rate cut expectations
LIVONIA, Mich. - On Thursday, Masco Corporation (NYSE:MAS) reported second-quarter earnings that significantly exceeded analyst expectations, despite a slight revenue decline.
The home improvement products manufacturer’s shares jumped 5.07% in pre-market trading after the release.
The company posted adjusted earnings of $1.30 per share for the second quarter, handily beating the analyst consensus of $1.08. Revenue came in at $2.05 billion, slightly above analysts’ expectations of $2 billion but down 2% from the same period last year. When adjusted for currency effects and divestitures, net sales were flat YoY.
Masco demonstrated strong margin improvement, with adjusted operating profit margin increasing 100 basis points to 20.1%. The company’s Plumbing Products segment was a bright spot, with sales increasing 5%, while Decorative Architectural Products sales declined 12%.
"During the first half of this year, we demonstrated our ability to successfully navigate a dynamic geopolitical and macroeconomic environment through our focused execution," said Masco President and CEO Jon Nudi. "Our second quarter results were strong as we expanded adjusted operating profit margin by 100 basis points to 20.1%, and we grew adjusted earnings per share by 8% to $1.30."
Looking ahead, Masco raised its full-year guidance, now expecting adjusted earnings of $3.90 to $4.10 per share, well above the analyst consensus of $3.62. The company anticipates that sales will be generally in line with the prior year when adjusted for divestitures and currency, despite projecting that global repair and remodel markets will decline by low-single digits for the year.
During the quarter, Masco returned $167 million to shareholders through dividends and share repurchases, including buying back 1.6 million shares for $101 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.