Masco Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Masco (NYSE:MAS) will unveil its latest earnings on Monday, October 29, 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 estimate of analysts is for profit of 12 cents per share, a rise of 50% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 1200% compared to last year’s 26 cents.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of 10 cents per share against a mean estimate of 11 cents. Two quarters ago, it beat expectations by 5 cents with profit of 5 cents.

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A Look Back: In the second quarter, the company swung to a loss of $75 million (22 cents a share) from a profit of $8 million (2 cents) a year earlier, missing analyst expectations. Revenue fell 0.9% to $2 billion from $2.02 billion.

Stock Price Performance: Between July 30, 2012 and October 23, 2012, the stock price rose $1.93 (14.7%), from $13.12 to $15.05. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 14, 2012, when shares rose for eight straight days, increasing 17.4% (+$2.34) 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.

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

Key Stats:

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 5.8% in the the first quarter after dropping in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.56 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 regressed in this liquidity measure from 1.64 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.3% to $2.55 billion while assets rose 2.3% to $3.99 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 1% in revenue from the year-earlier quarter to $2.03 billion.

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

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