Inside Masco’s Upcoming Second Quarter Earnings Release

S&P 500 (NYSE:SPY) component Masco Corp (NYSE:MAS) will unveil its latest earnings on Monday, July 25, 2011. Masco Corporation manufactures and installs building and home improvement products including faucets, cabinets, architectural coatings and windows.

Masco Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 8 cents per share, a decline of 50% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 10 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 8 cents during the last month. For the year, analysts are projecting profit of 20 cents per share, a rise of 25% from last year.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the first quarter, it missed the mark by 2 cents as a result of reporting a loss of 5 cents against an estimate of net loss of 3 cents per share. In the fourth quarter of the last fiscal year, the company fell short of forecasts by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.98 billion in revenue this quarter, a decline of 3.4% from the year ago quarter. Analysts are forecasting total revenue of $7.6 billion for the year, a rise of 0.1% from last year’s revenue of $7.59 billion.

Analyst Ratings: Analysts seem relatively indifferent about Masco with 14 of 18 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen for the past three quarters. In first quarter, revenue declined 4.3% to $1.77 billion while the figure fell 7.2% in fourth quarter of the last fiscal year from the year earlier and 6.5% in the third quarter of the last fiscal year.

Competitors to Watch: Fortune Brands, Inc. (NYSE:FO), American Woodmark Corp. (NASDAQ:AMWD), U.S. Home Systems, Inc. (NASDAQ:USHS), Patrick Industries, Inc. (NASDAQ:PATK), ALNO AG (AMEX:ANO), Home Depot (NYSE:HD), Constellation Brands (NYSE:STZ) and Lowe’s (NYSE:LOW).

Stock Price Performance: During May 20, 2011 to July 19, 2011, the stock price had fallen $2.61 (-18.4%) from $14.16 to $11.55. The stock price saw one of its best stretches over the last year between March 1, 2011 and March 9, 2011 when shares rose for seven-straight days, rising 7.1% (+92 cents) over that span. It saw one of its worst periods between May 27, 2011 and June 10, 2011 when shares fell for 10-straight days, falling 17.3% (-$2.46) over that span. Shares are down 89 cents (-7.2%) year to date.

(Source: Xignite Financials)

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