Why Masonite International Corp (NYSE: DOOR) stock is in red

Free $100 Forex No-Deposit Bonus

Masonite International Corp (NYSE: DOOR) stock lost over 0.9% on Feb 19th, 2019 (as of 10:40 am GMT-5; Source: Google finance). Net income attributable to Masonite decreased to $12 million from $72 million; prior period net income included non-cash tax benefits totaling $51 million. Adjusted EBITDA has fallen by 10% to $57 million from $64 million. Total company gross profit decreased 5% to $95 million in the fourth quarter of 2018, from $100 million in the comparable period of 2017. Gross profit margin decreased 170 basis points to 18.0%, due primarily to higher raw material costs and the impact of lower volume, partially offset by higher AUP.

DOOR in the fourth quarter of FY 18 has reported the adjusted earnings per share of 68 cents, beating the analysts’ estimates for the adjusted earnings per share of 62 cents. The company had reported the adjusted revenue growth of 4 percent to $528.4 million in the fourth quarter of FY 18, which is in line with the analysts’ estimates for revenue of  $528.4 million. The growth in net sales was a result of an 8% increase in sales volume from acquisitions and a 3% increase in average unit price (AUP), partially offset by a 6% decrease in base volumes and a 1% negative impact from foreign exchange.

Moreover, North American Residential net sales were $349 million, a 3% decrease over the fourth quarter of 2017, driven by a 8% decrease in base volume due to soft wholesale volumes, particularly in December, and previously announced lost retail business. Europe net sales were $90 million, a 23% increase over the fourth quarter of 2017, due to a 28% increase in sales volume from acquisitions and 1% higher AUP. Architectural net sales were $83 million, a 19% increase from the fourth quarter of 2017, driven by a 17% increase in sales volume from acquisitions, 4% higher AUP and 2% higher sales of components. These gains were partially offset by a 3% decrease in base volume.

Masonite repurchased 1,306,984 of its common shares in the fourth quarter, at an average price of $55.40.

In addition to the fourth quarter restructuring charge of $2 million, the company expects restructuring costs associated with additional planned actions in 2019 to be approximately $10 million to $15 million.

The company expects full-year 2019 net sales growth to be in the range of three to five percent. The Company expects 2019 diluted adjusted earnings per share to be in the range of $3.60 to $4.40.

Copyright © 2019. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.