Yahoo Finance Unpacking Q1 Earnings: Masco (NYSE:MAS) In The Context Of Other Home Construction Materials Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how home construction materials stocks fared in Q1, starting with Masco (NYSE:MAS).
Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies.
The 13 home construction materials stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 0.5%. while next quarter's revenue guidance was 2.3% above consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the home construction materials stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.4% on average since the previous earnings results.
Masco (NYSE:MAS)
Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.
Masco reported revenues of $1.93 billion, down 2.7% year on year, in line with analysts' expectations. Overall, it was a slower quarter for the company with a miss of analysts' organic revenue estimates.
“We delivered another quarter of strong results,” said Masco President and CEO, Keith Allman.
The stock is flat since reporting and currently trades at $73.18.
Read our full report on Masco here, it's free.
Best Q1: Griffon (NYSE:GFF)
Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Griffon reported revenues of $672.9 million, down 5.4% year on year, outperforming analysts' expectations by 7.6%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Griffon pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4% since reporting. It currently trades at $70.46.
Is now the time to buy Griffon? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Simpson (NYSE:SSD)
Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products.
Simpson reported revenues of $530.6 million, flat year on year, falling short of analysts' expectations by 2.6%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is flat since the results and currently trades at $183.95.
Read our full analysis of Simpson's results here.
American Woodmark (NASDAQ:AMWD)
Starting as a small millwork shop, American Woodmark (NASDAQ:AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.
American Woodmark reported revenues of $453.3 million, down 5.8% year on year, surpassing analysts' expectations by 2.8%. Revenue aside, it was a mixed quarter for the company.
The stock is down 1.5% since reporting and currently trades at $91.32.
Read our full, actionable report on American Woodmark here, it's free.
Fortune Brands (NYSE:FBIN)
Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products.
Fortune Brands reported revenues of $1.11 billion, up 6.7% year on year, surpassing analysts' expectations by 2.7%. Taking a step back, it was an exceptional quarter for the company with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 1.2% since reporting and currently trades at $73.93.
Read our full, actionable report on Fortune Brands here, it's free.
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