01—Abstract
Summary
Summary of the 8-K filed July 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation reported second quarter 2024 results on July 25, 2024, with net sales of $2,091 milliona, down 2 percent from $2,127 million in the prior-year quarter.
Operating profit was $397 millionb, down 1 percent from $403 million, and the operating margin rose 10 basis points to 19.0 percent. Reported diluted earnings per share were $1.17, compared with $1.16 a year earlier. Adjusted operating profit was $399 million and adjusted earnings per share grew 1 percent to $1.20.
Plumbing Products net sales rose 2 percent, while Decorative Architectural Products net sales fell 7 percent. Gross margin improved 130 basis points to 37.5 percent. Management said it expects continued demand headwinds in the second half of 2024 as market conditions remain challenged, but expects operating margin expansion for the full year.
The company raised its 2024 adjusted EPS outlook to $4.05 to $4.20c, from a prior range of $4.00 to $4.25. Reported EPS guidance is $4.03 to $4.18. Liquidity at quarter-end was $1,398 million, and the company repurchased 2.0 million shares for $143 million during the quarter.
The Board declared a quarterly dividend of $0.29d per share, payable August 19, 2024. The filing states that the detailed results, supplemental information and a presentation are contained in Exhibit 99, a press release dated July 25, 2024. The company also noted an investor conference call and webcast held that day to discuss the results.
02—Key points
Key Highlights
- Net sales decreased 2 percent to $2,091 million, and were down 2 percent in local currency excluding acquisitions.
- Plumbing Products net sales increased 2 percent, while Decorative Architectural Products net sales decreased 7 percent.
- Gross margin rose 130 basis points to 37.5 percent; adjusted gross margin rose 140 basis points to 37.6 percent.
- Reported diluted EPS was $1.17 versus $1.16 a year earlier; adjusted EPS grew 1 percent to $1.20.
- Full-year 2024 adjusted EPS guidance was narrowed to $4.05 to $4.20, from $4.00 to $4.25 previously; reported EPS guidance is $4.03 to $4.18.
- The company repurchased 2.0 million shares for $143 million and returned $206 million to shareholders through dividends and buybacks.
- Total liquidity was $1,398 million at quarter-end, and the Board declared a $0.29 quarterly dividend.
03—Questions
Frequently Asked Questions
How did Masco perform in the second quarter of 2024?
Net sales fell 2 percent to $2,091 million, while operating profit fell 1 percent to $397 million. Operating margin rose 10 basis points to 19.0 percent, and reported EPS was $1.17, compared with $1.16 a year earlier.
Which segments drove the results?
Plumbing Products net sales increased 2 percent to $1,253 million, with operating margin at 19.7 percent. Decorative Architectural Products net sales decreased 7 percent to $838 million, with operating margin at 20.8 percent.
Did Masco change its 2024 earnings outlook?
Yes. The company now expects 2024 adjusted EPS of $4.05 to $4.20, compared with its previous expectation of $4.00 to $4.25. Reported EPS guidance is $4.03 to $4.18.
What did management say about the second half of 2024?
Management anticipates ongoing demand headwinds as market conditions remain challenged, but says it is well positioned to drive full-year operating margin expansion through execution and operational efficiencies.
How much did Masco return to shareholders and what is its liquidity?
The company returned $206 million to shareholders through dividends and share repurchases, including repurchasing 2.0 million shares for $143 million. Total liquidity at the end of the second quarter was $1,398 million, including revolver availability.
04—Continue