Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of home improvement company Masco Corporation (MAS 0.19%) dropped as much as 11% today after reporting earnings. They recovered slightly and ended the day down 7.4%.
So what: Revenue was actually up 5% in the first quarter to $1.97 billion, no small feat in a down housing market. Net income also improved from $53 million a year ago to $74 million, and on an adjusted basis was $0.15 per share. The problem today was that analysts expected earnings of $0.17 per share.
Now what: Considering the bad news we've been hearing from the housing market over the past few weeks and the bad weather that hit much of the country in Q1 I think these were decent results. International sales also improved 12% from a year ago, so the company is diversifying exposure. Shares aren't cheap at 19 times this year's estimated earnings, but I think there's lots of upside in housing over the next few years and shares are cheap after today's drop.
