NYSE$MBC

MasterBrand INC · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

MasterBrand reported a solid quarter with net sales at the high-end of internal expectations, achieving its fifth consecutive quarter of year-over-year adjusted EBITDA margin expansion despite market headwinds.

MasterBrand reported Q4 2023 net sales of $677.1 million, a 14% decrease year-over-year, but net income increased 134% year-over-year to $36.1 million. The adjusted EBITDA margin increased 20 basis points year-over-year to 12.7%.

  • Net sales decreased 14% year-over-year to $677.1 million due to lower volumes.
  • Net income increased 134% year-over-year to $36.1 million due to higher operating income.
  • Gross profit margin increased 550 basis points to 32.9% due to savings from strategic initiatives.
  • Adjusted EBITDA margin increased 20 basis points to 12.7%.

Headline financials

Total Revenue

$677M

Previous: $784M-13.7%
EPS (adj)

$0.34

Previous: $0.52-34.6%
Gross Profit Margin

32.9%

Previous: 27.4%+20.1%
Adjusted EBITDA Margin

12.7%

Previous: 12.5%+1.6%
Capital Expenditures

-$35.9M

Previous: $23.7M-251.5%
Net Income

$36.1M

Previous: $15.4M+134.4%
Operating Income

$61M

Previous: $42.6M+43.2%
Gross Profit

$223M

Previous: $215M+3.8%
Stock-Based Comp

$4.6M

Previous: $2.8M+64.3%

Revenue & EPS history

MasterBrand · Revenue · Quarterly

$677M

Q4 2023-13.7%vs Q4 2022
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

For full year 2024, the Company expects net sales to decline low single-digit percentage to flat, adjusted EBITDA in the range of $370 million to $400 million, with related adjusted EBITDA margins of roughly 14.0 to 14.5 percent and Adjusted EPS in the range of $1.40 to $1.60.

Tailwinds

  • Net sales performance to be in line with the underlying market demand.
  • Initiatives designed to gain share to more than offset trade down and continued soft market demand.
  • The ability to flex manufacturing, due to the success of the common box initiative.
  • Further execution on strategic initiatives.
  • Continuous improvement efforts should allow for flat to slightly higher full year adjusted EBITDA margins.

Headwinds

  • Net sales year-over-year decline of low single-digit percentage to flat
  • Adjusted EBITDA in the range of $370 million to $400 million
  • Adjusted EBITDA margins of roughly 14.0 to 14.5 percent
  • Adjusted EPS in the range of $1.40 to $1.60
  • Continued soft market demand

Historical earnings impact

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

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.6%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

53%

9 / 17 earnings

Positive

+18.6%

Q1 2022

Best reaction

-15.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.2%-14.0%+0.2%
Q4 2025-12.7%-14.7%-41.0%
Q3 2025-14.4%-15.4%-11.8%
Q1 2025-15.9%-7.8%-13.2%
Q4 2024-5.9%-9.4%-17.7%
Q3 2024+0.2%-3.4%-5.4%
Q2 2024-4.4%-4.1%+0.8%
Q1 2024-7.6%-5.1%-10.1%
Q4 2021+8.0%+14.6%+21.3%
Q4 2023+7.7%+15.0%+22.4%
Q3 2022+1.7%+4.1%+24.7%
Q3 2023+0.3%+5.5%+23.4%
Q2 2022+5.0%+0.0%-1.8%
Q2 2023+1.3%+3.9%-0.7%
Q1 2022+18.6%+24.3%+23.8%
Q1 2023+18.5%+22.1%+29.0%
Q4 2022-2.8%-6.0%-22.2%
Q3 2021
Q2 2021
Q1 2021

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