Masco Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Masco (NYSE:MAS) will unveil its latest earnings on Monday, July 30, 2012. Masco manufactures and installs building and home improvement products including faucets, cabinets, architectural coatings, and windows.

Masco Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 11 cents per share, a rise of more than twofold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 8 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 11 cents during the last month. Analysts are projecting profit to rise by 1300% compared to last year’s 28 cents.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 5 cents per share against a mean estimate of 0 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 6 cents.

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A Look Back: In the first quarter, the company swung to a profit of $33 million (9 cents a share) from a loss of $46 million (13 cents) a year earlier, beating analyst estimates. Revenue rose 5.8% to $1.88 billion from $1.77 billion.

Stock Price Performance: From June 25, 2012 to July 24, 2012, the stock price rose $1.39 (11.3%), from $12.26 to $13.65. The stock price saw one of its best stretches over the last year between October 19, 2011 and October 27, 2011, when shares rose for seven straight days, increasing 18.4% (+$1.59) over that span. It saw one of its worst periods between March 27, 2012 and April 10, 2012 when shares fell for 10 straight days, dropping 12.7% (-$1.76) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.08 billion in revenue this quarter, a rise of 3% from the year-ago quarter. Analysts are forecasting total revenue of $7.86 billion for the year, a rise of 5.2% from last year’s revenue of $7.47 billion.

Key Stats:

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 3.9% in the fourth quarter of the last fiscal year after increasing in the first quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 13 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.64 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.45 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 13.8% to $3.9 billion while liabilities rose by 0.6% to $2.38 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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