Masco Clocks 9% Sales Growth In Q4; Hikes Dividend

  • Masco Corp MAS reported fourth-quarter FY21 net sales growth of 8.7% year-over-year to $2.02 billion, beating the consensus of $1.95 billion.
  • In local currency, North American sales increased 11% Y/Y, and international sales rose 3% Y/Y.
  • The gross margin contracted by 490 bps to 30.6%. The operating income decreased by 29% Y/Y to $218 million, and the margin contracted by 572 bps to 10.8%.
  • On an adjusted basis, the operating margin contracted by 350 bps to 13.1%.
  • Adjusted EPS decreased to $0.67 compared to $0.75 in 4Q20, missing the consensus of $0.68.
  • Plumbing Products sales were $1.23 billion (+5% Y/Y), and adjusted operating margin of 12.7%, down 640 bps.
  • Decorative Architectural Products sales were $794 million (+15% Y/Y), and adjusted operating margin of 16.6% vs. 15.8% in 4Q20.
  • Adjusted EBITDA decreased by 12.2% Y/Y to $301 million, and margin contracted by 355 bps to 14.9%.
  • Masco generated cash from operating activities for FY21 of $930 million, compared to $953 million a year ago.
  • As of December 31, 2021, the company's liquidity stood at $1.926 billion, including ash and equivalents of $926 million.
  • Masco declared a quarterly dividend of $0.28 per share, a 19% increase from the prior dividend of $0.235, payable on March 14, 2022, to shareholders of record on February 25, 2022
  • FY22 Outlook: Masco expects EPS of $4.06-$4.26, and on an adjusted basis of $4.10-$4.30, against the consensus of $4.14.
  • Price Action: MAS shares are trading lower by 2.07% at $59.07 on the last check Tuesday.
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