Masco Corp (MAS) Reports Q3 2023 Earnings

GuruFocus Research
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In this article:

  • Masco Corp (NYSE:MAS) reported an operating profit of $383 million for Q3 2023.

  • The company's net sales decreased by 10% to $1,979 million compared to Q3 2022.

  • Earnings per share for the quarter stood at $1.10, with adjusted earnings per share growing 1% to $1.00.

  • Masco Corp (NYSE:MAS) returned $109 million to shareholders through share repurchases and dividends.

Released on October 26, 2023, Masco Corp (NYSE:MAS)'s Q3 2023 earnings report shows a mixed financial performance. The company reported an operating profit of $383 million, with an operating profit margin of 19.4%. The adjusted operating profit was slightly lower at $348 million, with a margin expansion of 170 basis points to 17.6%.

Financial Performance


Net sales for the quarter decreased by 10% to $1,979 million. In local currency and excluding acquisitions, net sales decreased by 11%. North American sales and international sales both decreased by 11% in local currency. Despite the decrease in sales, the gross margin increased significantly by 610 basis points to 37.6% from 31.5% in Q3 2022.

Earnings Per Share and Shareholder Returns


The earnings per share for the quarter was $1.10, with adjusted earnings per share growing 1% to $1.00. The company returned $109 million to shareholders through share repurchases and dividends. Additionally, Masco Corp (NYSE:MAS) closed the acquisition of Sauna360 Group Oy for 124 million.

Outlook


Based on the strong operational performance, the company has raised its expected 2023 earnings per share to be in the range of $3.76 $3.86 per share. On an adjusted basis, the earnings per share are expected to be in the range of $3.65 $3.75 per share.

CEO Commentary


Our continued ability to successfully execute in a challenging demand environment, along with our continued focus on driving productivity improvements led to strong margin performance and earnings per share growth in the third quarter," said Masco President and CEO, Keith Allman.

Dividend Declaration


Mascos Board of Directors declared a quarterly dividend of $0.285 per share, payable on November 27, 2023 to shareholders of record on November 10, 2023.

Explore the complete 8-K earnings release (here) from Masco Corp for further details.

This article first appeared on GuruFocus.

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