Masco beats quarterly profit estimates on higher prices

Masco

25/07/2024 13:22

July 25 (Reuters) - Home improvement firm Masco  MAS.N 
on Thursday beat Wall Street expectations for second-quarter
profit, as its higher-priced products like architectural
coatings and bath hardware helped lift margins.
    Shares of the Livonia, Michigan-based company were up about
5% in premarket trading.
    Masco has been bumping up prices of its products like
showerheads, kitchen accessories as well as paints to counter
rising costs of shipping and commodities like brass. That helped
the company expand its quarterly gross margins by 130 basis
points to 37.5%.
    With consumers taking up small repair projects, sales in
Masco's plumbing products segment, a major revenue contributor,
rose 2% after falling 11% last year.
    On an adjusted basis, the company posted earnings per share
of $1.20 for the quarter ended June 30, ahead of analysts'
estimates of $1.18 per share, as per LSEG data.
    Sales in the decorative architectural business -including
waterproofing products- fell 7%, owing to consumer push back on
big renovations.
    The company posted second-quarter sales of $2.09 billion,
missing estimates of $2.10 billion.
    It expects full-year earnings per share in the range of
$4.05 to $4.20, compared with its prior forecast of $4.00 to
$4.25 per share.

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Shailesh Kuber)
 ((AnujaBharat.Mistry@thomsonreuters.com;))