NYSE$MAS

Masco Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Masco's Q2 2023 performance reflected resilience amidst a lower demand environment, driven by pricing actions and improved operational efficiency.

Masco Corporation reported a decrease in net sales by 10% to $2,127 million, but managed to expand its adjusted operating profit margin by 140 basis points to 19.0%. The company's earnings per share increased by 3% to $1.19 on an adjusted basis. Masco also announced an agreement to acquire Sauna360 Group Oy and raised its expected 2023 adjusted earnings per share to $3.50 - $3.65.

  • Operating profit was $403 million; adjusted operating profit was $404 million.
  • Operating profit margin was 18.9 percent; adjusted operating profit margin expanded 140 basis points to 19.0 percent.
  • Earnings per share was $1.16 per share; adjusted earnings per share grew 3 percent to $1.19 per share.
  • Entered into an agreement to acquire Sauna360 Group Oy, a strategic bolt-on that expands the Company’s spa and wellness product offerings.

Headline financials

Total Revenue

$2.13B

Previous: $2.35B-9.6%
EPS (adj)

$1.19

Previous: $1.14+4.4%
Gross Margin

36.2%

Previous: 32.7%+10.7%
Operating Margin

18.9%

Previous: 17.3%+9.2%
Free Cash Flow

$263M

Previous: $278M-5.4%
Net Income

$263M

Previous: $278M-5.4%
Operating Income

$403M

Previous: $408M-1.2%
Gross Profit

$769M

Previous: $769M+0.0%
Cash & Equivalents

$380M

Previous: $440M-13.6%
Total Assets

$5.31B

Previous: $5.47B-2.9%

Revenue & EPS history

Masco · Revenue · Quarterly

$2.13B

Q2 2023-9.6%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Masco · $2.13B total across 2 segments · Q2 2023

  • Plumbing Products Net Sales
    $1.23B-10.8%
  • Decorative Architectural Products Net Sales
    $902M-7.9%

Forward guidance

Masco is raising its expected 2023 earnings per share to be in the range of $3.48 – $3.63 per share, and on an adjusted basis, $3.50 – $3.65 per share.

Tailwinds

  • Adjusted earnings per share in the range of $3.50 to $3.65 per share for 2023
  • Strong free cash flow
  • Disciplined capital deployment
  • Long-term fundamentals of repair and remodel markets continue to be strong.
  • Focus on investing in brands and capabilities and maintaining strong execution.

Headwinds

  • Near-term demand environment remains challenging.
  • Net sales decreased 10 percent to $2,127 million
  • In local currency, North American sales decreased 10 percent and international sales decreased 8 percent
  • Operating profit decreased 1 percent to $403 million from $408 million
  • Net income decreased to $1.16 per share, compared to $1.18 per share

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.9%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+0.4%

Avg return

30 days after

58%

42 / 72 earnings

Positive

+14.0%

Q2 2015

Best reaction

-9.5%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%+11.2%+0.8%
Q4 2025+8.7%+6.4%-15.3%
Q3 2025-4.6%-6.9%-5.2%
Q1 2025-3.4%-1.5%+0.6%
Q4 2024+1.4%+1.0%-10.8%
Q3 2024-1.6%-1.8%-1.5%
Q2 2024+9.7%+11.0%+14.3%
Q1 2024-4.3%-4.0%-5.4%
Q4 2023+3.1%+2.9%+9.1%
Q3 2023+5.6%+7.8%+22.5%
Q2 2023-0.6%-0.3%-8.0%
Q1 2023+5.3%+6.2%+1.1%
Q4 2022+1.7%+2.4%-7.4%
Q3 2022-4.8%-4.3%+5.4%
Q2 2022+2.7%-1.3%-5.4%
Q1 2022+4.4%+0.4%+9.7%
Q4 2021+0.4%-4.3%-10.7%
Q3 2021+7.2%+5.8%+9.8%
Q2 2021+0.1%+1.1%+3.9%
Q1 2021+2.2%+2.5%-5.1%
Q4 2020-3.6%-4.2%-0.5%
Q3 2020+0.7%+2.2%+1.3%
Q2 2020+1.5%+1.6%+3.9%
Q1 2020-1.6%-4.5%+11.8%
Q4 2019-5.2%-8.1%-24.7%
Q3 2019+3.6%+3.4%+4.3%
Q2 2019+5.9%+6.0%-1.4%
Q1 2019-3.8%-2.3%-6.8%
Q4 2018+8.0%+10.6%+18.0%
Q3 2018+9.3%+14.1%+14.0%
Q2 2018+1.3%+0.1%-3.3%
Q1 2018-5.8%-3.6%-4.9%
Q4 2017-1.3%+0.2%-0.5%
Q3 2017-1.1%+0.1%-0.4%
Q2 2017+2.5%+1.8%-3.5%
Q1 2017+6.9%+5.7%+6.0%
Q4 2016-0.1%-2.0%+0.4%
Q3 2016-8.8%-8.5%-3.5%
Q2 2016+6.5%+6.6%+3.0%
Q1 2016-1.7%
Q4 2015+8.7%
Q3 2015+6.0%
Q2 2015+14.0%
Q1 2015+1.9%
Q4 2014+1.0%
Q3 2014-4.0%
Q2 2014+3.9%
Q1 2014-6.2%
Q4 2013+2.0%
Q3 2013+2.3%
Q2 2013+4.9%
Q1 2013-5.7%
Q4 2012+12.5%
Q3 2012+3.3%
Q2 2012-9.5%
Q1 2012+2.0%
Q4 2011-1.9%
Q3 2011-6.1%
Q2 2011-3.3%
Q1 2011+0.4%
Q4 2010-1.1%
Q3 2010-0.1%
Q2 2010+1.7%
Q1 2010-1.3%
Q1 2009-1.3%
Q4 2007+1.0%
Q4 2009+1.0%
Q3 2008-3.2%
Q3 2009-3.2%
Q4 2008+0.5%
Q2 2009+0.5%
Q2 2008+0.5%

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