Masco Earnings: Here’s Why Shares are Down Now

Masco Corporation (NYSE:MAS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.83%.

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Masco Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 160% to $0.13 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 1.33% to $1.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Masco Corporation reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $1.97 billion.

Quoting Management: “We continued to benefit from strong growth in North American new home construction,” said Masco`s President and CEO, Tim Wadhams. “Despite a harsher winter this year in regions of North America and Europe, we improved our performance in the first quarter compared to 2012. The new products and programs we`ve introduced have exceeded our expectations and contributed to our steady growth. Our Cabinet segment is heading in the right direction, with adjusted operating performance achieving a break-even level of profitability. The successful execution of our strategic initiatives, including leveraging our brands, reducing our costs, improving our Installation and Cabinet segments and strengthening our balance sheet is reflected in our overall positive performance in the first quarter of 2013.”

Key Stats (on next page)…

Revenue increased 0.53% from $1.89 billion in the previous quarter. EPS increased 225% from $0.04 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.17 to a profit $0.19. For the current year, the average estimate has moved up from a profit of $0.56 to a profit of $0.68 over the last ninety days.

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