Home-improvement products maker Masco
What analysts say:
- Buy, sell, or waffle? Thirteen analysts follow Masco, giving it four buy ratings, eight holds, and a sell.
- Revenues. On average, the analysts expect to see sales slip 7% to $3.06 billion.
- Earnings. Profits are predicted to fall even harder, down 25% to $0.45 per share.
What management says:
Masco updated investors on its guidance last month. Unfortunately, that guidance came in the form of an earnings warning. The long and short of things is that management expects to earn about $1.60 this year.
What management does:
Over the last 18 months, Masco's margins have headed in just one direction -- down. No surprise there. We're seeing the same trends (albeit of more recent origin) at rivals Fortune Brands
3/06 |
6/06 |
9/06 |
12/06 |
3/07 |
6/07 |
|
---|---|---|---|---|---|---|
Gross |
28.3% |
28.2% |
28.1% |
27.5% |
27.2% |
27.1% |
Operating |
13.0% |
13.1% |
12.6% |
11.4% |
10.9% |
10.4% |
Net |
7.1% |
6.6% |
6.6% |
3.8% |
3.4% |
3.2% |
One Fool says:
The dividend-desiring duo over at Motley Fool Income Investor isn't overly worried about Masco's declining stock price. On the contrary, I'm betting their first thought when seeing it is: Lower price? Higher yield!
Commenting on the company's performance in the semiannual portfolio review back in June, Income Investor advisor James Early spoke approvingly of Masco's decision to promote CFO and 30-year Masco veteran Timothy Wadhams into the CEO's chair. Observing that Wadhams will be "the first non-family CEO in Masco's 78-year history," James pointed out how Wrigley's
What do James and co-advisor Andy Cross think of the new CEO three months into his tenure? Try out Income Investor on our dime, and see what they have to say.
What's Masco done for us lately? Find out in: