Masco Earnings: Here’s Why Investors are Buying Shares Now

Masco Corporation (NYSE:MAS) delivered a profit and beat Wall Street’s expectations, AND met the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.08%.

Masco Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 130% to $0.23 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 4.79% to $2.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Masco Corporation reported adjusted EPS income of $0.23 per share. By that measure, the company beat the mean analyst estimate of $0.2. It met the average revenue estimate of $2.1 billion.

Quoting Management: “We are very pleased with our second quarter 2013 results, certainly one of the strongest quarters since the downturn and a continuation of the momentum which started for us in the fourth quarter of 2012,” said Masco`s President and CEO, Tim Wadhams. “Top and bottom line growth was delivered by each of our segments in the second quarter against a backdrop of continued growth in North American new home construction and new product introductions. Continuing our trend, we introduced new products in our Decorative Architectural segment and benefited from the growth of previously introduced new products and programs at retail. Our Cabinet and Installation segments further improved their performance by achieving profitability and we remain focused on driving profitable growth in our North American cabinetry business. In addition, we were pleased with our international sales growth, given the weakness in European economies. Our strong performance reflects our ongoing success in leveraging the housing recovery and the continued execution of our strategic priorities, including our focus on cost containment.”

Key Stats (on next page)…

Revenue increased 11.94% from $1.88 billion in the previous quarter. EPS increased 76.92% from $0.13 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.23 to a profit $0.22. For the current year, the average estimate has moved up from a profit of $0.68 to a profit of $0.7 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)