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Masco (MAS) Tops Q1 Earnings & Sales, Cabinet Sales Down
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Masco Corporation’s (MAS - Free Report) 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
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the second quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 1.7% and 5.2%, respectively.
NVR, Inc. (NVR - Free Report) , reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate by 27.3%. The reported figure also rose 59% from the year-ago profit level.
Upcoming Release in the Construction Sector
Louisiana-Pacific Corp. (LPX - Free Report) is scheduled to release its quarterly numbers on May 5. The Zacks Consensus Estimate for earnings is pegged at 29 cents, an increase of 319.1% on a year-over-year basis.
Zacks’ Best Private Investment Ideas
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Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Masco (MAS) Tops Q1 Earnings & Sales, Cabinet Sales Down
Masco Corporation’s (MAS - Free Report) 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
Masco Corporation Price, Consensus and EPS Surprise | Masco Corporation Quote
Financials
Masco ended the quarter with cash and cash investments of $689 million, as of Mar 31, 2017 compared with $990 million as of Dec 31, 2016.
The company returned over $120 million to shareholders through dividends and share repurchases.
Zacks Rank and Peer Releases
Masco carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the second quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 1.7% and 5.2%, respectively.
NVR, Inc. (NVR - Free Report) , reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate by 27.3%. The reported figure also rose 59% from the year-ago profit level.
Upcoming Release in the Construction Sector
Louisiana-Pacific Corp. (LPX - Free Report) is scheduled to release its quarterly numbers on May 5. The Zacks Consensus Estimate for earnings is pegged at 29 cents, an increase of 319.1% on a year-over-year basis.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>