Masco Corporation (NYSE:MAS) reported second-quarter earnings that significantly surpassed analyst expectations on Thursday, despite a slight revenue decline.
The home improvement products maker’s shares surged 5.07% in pre-market trading after the earnings release.
Masco posted adjusted earnings of $1.30 per share for Q2, comfortably beating the analyst consensus of $1.08. Revenue reached $2.05 billion, slightly above estimates of $2 billion but down 2% from the same quarter last year. When adjusted for currency effects and divestitures, net sales were flat year-over-year.
The company showed notable margin improvement, with its adjusted operating profit margin rising 100 basis points to 20.1%. The Plumbing Products segment was a standout performer, posting 5% sales growth, while sales in Decorative Architectural Products declined 12%.
“During the first half of this year, we demonstrated our ability to successfully navigate a dynamic geopolitical and macroeconomic environment through our focused execution,” said Masco President and CEO Jon Nudi. “Our second quarter results were strong as we expanded adjusted operating profit margin by 100 basis points to 20.1%, and we grew adjusted earnings per share by 8% to $1.30.”
Looking ahead, Masco raised its full-year guidance, now expecting adjusted earnings per share between $3.90 and $4.10, well above the analyst consensus of $3.62. The company expects sales to remain generally in line with the prior year when adjusted for divestitures and currency, despite anticipating a low-single-digit decline in global repair and remodel markets for the year.
During the quarter, Masco returned $167 million to shareholders through dividends and share buybacks, including repurchasing 1.6 million shares for $101 million.
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