Dallas, Texas 04/28/2014 (FINANCIALSTRENDS) – Masco Corporation (NYSE:MAS) saw its share price drop by a big 7.44 percent during trading on 25th April. The sell off occurred due to disappointing results the firm reported for its 1Q operation results for which results were announced on 24th April, after close of business.
Masco Corporation (NYSE:MAS) President, Chief Executive Officer and Director Keith J. Allman in his comments post the earnings call highlighted the positives from the quarter operations by stating that, “quarters MASCO’s first quarter 2014 results showed year-over-year sales and profit growth and margin expansion compared to the prior year quarter. Our new products and program wins drove sales in the quarter. We also continued to benefit from the positive trends in new home construction and improving repair and re-model activity. Our international sales and profits exceeded our expectations.”
The less than expected earnings has been linked to the seasonal slowdown that the firm confronts every year. This year the slowdown was even more greatly felt due to the extreme weather conditions which caused construction and production activities to halt temporarily.
The other key takeaways from the earnings call were as follows. Masco Corporation (NYSE:MAS) reported revenue increase in the quarter. In 1Q14, revenue came in at $1.97 billion as against the $1.88 billion it had recorded in 1Q13. Earnings from operations came in at $74 million, which translated into 21 cents per share earnings. In comparison, the construction industry support supplier had reported earnings of $53 million for 1Q13 and had managed to post EPS of 15 cents per share.
Gross profit went up by 7.2 percent for the quarter to peak at $551 million while gross margin increased to 28 percent, on the back of revenue gains and implementation of cost cutting measures. Operating profits went up by 12.1 percent for the quarter.
