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Dec 31, 2022

Masco Q4 2022 Earnings Report

Masco's Q4 2022 earnings decreased due to softened demand in North America and increased operational costs, while international markets remained strong.

Key Takeaways

Masco Corporation reported a 5% decrease in net sales to $1,923 million for the fourth quarter of 2022. Earnings per share were $0.51, with adjusted earnings per share at $0.65. The company anticipates a challenging near-term demand environment in 2023 but remains confident in the long-term fundamentals of its markets.

Sales decreased by 5% to $1,923 million in Q4 2022.

Operating profit was $185 million, with an adjusted operating profit of $234 million.

Earnings per share were $0.51, and adjusted earnings per share was $0.65.

The board declared a quarterly dividend of $0.285 per share, a 2% increase.

Total Revenue
$1.92B
Previous year: $2.02B
-4.9%
EPS
$0.65
Previous year: $0.67
-3.0%
Gross Margin
28.3%
Previous year: 30.6%
-7.5%
Operating Margin
9.6%
Previous year: 10.8%
-11.1%
Gross Profit
$545M
Previous year: $619M
-12.0%
Cash and Equivalents
$452M
Previous year: $926M
-51.2%
Total Assets
$5.19B
Previous year: $5.58B
-7.0%

Masco

Masco

Masco Revenue by Segment

Masco Revenue by Geographic Location

Forward Guidance

Masco anticipates adjusted earnings per share to be in the range of $3.10 to $3.40 for 2023, with volumes expected to be down in the low double-digit range.

Positive Outlook

  • Long-term fundamentals of repair and remodel markets remain strong.
  • Focused on capitalizing on positive long-term demand trends.
  • Aiming to improve margins and invest in growth opportunities.
  • Strong balance sheet.
  • Disciplined capital allocation.

Challenges Ahead

  • Near-term demand environment expected to remain challenging.
  • Volumes overall expected to be down in the low double-digit range.
  • Soften demand.
  • Higher operational costs
  • Foreign currency

Revenue & Expenses

Visualization of income flow from segment revenue to net income