MBC Earnings Prediction
The chart below shows how MBC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MBC sees a +2.96% change in stock price 10 days leading up to the earnings, and a -10.12% change 10 days following the report. On the earnings day itself, the stock moves by +0.36%. This data can give you a slight idea of what to expect for the next quarter's release.
MBC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
667.70M
-1.39%
-7.02%
Gross Margin
29.47%
-9.04%
-8.68%
Operating Margin
6.66%
-32.73%
-40.54%
Net Margin
2.10%
-60.60%
-48.15%
EPS
0.11
-60.71%
-50.00%
No Data Available
MBC Earnings Analysis
MasterBrand Inc Corporation (MBC.N) Earnings Conference Call
Positive
Free Cash Flow Performance: Strong cash generation with free cash flow of $69 million in Q4 2024, totaling $211 million for the full year, aligning with the goal of exceeding net income.
Sales Increase from Acquisition: The acquisition of Supreme Cabinetry Brands contributed a 9% year-over-year increase to net sales, indicating successful integration and performance.
Cash Management Improvement: Despite market challenges, the company maintained a disciplined approach to cash management, improving all measures of the cash conversion cycle.
Tech Enabled Initiative Investment: The company is committed to strategic initiatives, particularly the Tech Enabled initiative, with plans to invest an additional $15 million in 2025, which is expected to drive future growth.
Efficiency and Cost Reduction: Operational improvements and cost-saving measures are being implemented, including the consolidation of facilities to enhance efficiency and reduce costs.
Demand Recovery Expectations: The company anticipates modest demand recovery in the back half of 2025, with expectations for new construction end market demand to strengthen as builders work through existing inventory.
Negative
Earnings Miss Reported: MasterBrand, Inc. missed earnings expectations with reported EPS of $0.21, falling short of the expected $0.38.
Q4 2024 Net Sales Decline: Net sales for Q4 2024 were $668 million, a 1% decline compared to the same period last year, attributed to increased choppiness in the repair and remodel business.
Volume Decline Impact: The company experienced a year-over-year volume decline of 6% in its legacy business, exacerbating average selling price headwinds.
Net ASP Decline Analysis: There was a 4% year-over-year net ASP decline in the legacy business, primarily due to a negative mix shift caused by volume declines in higher price point products.
Q4 Adjusted EBITDA Decline: Adjusted EBITDA for Q4 was $75 million, with a margin of 11.2%, which is 150 basis points lower than the same period last year, driven by pressure on net ASP and volume declines.
Net Income Decline: Net income dropped to $14 million in Q4, down from $36.1 million in the same period last year, primarily due to lower gross profit and increased costs.
Gross Profit Margin Decline: The gross profit margin decreased from 32.9% to 30.4% year-over-year, reflecting a negative price/cost relationship and lower volume.
Net Sales Decline: The full year 2024 net sales were $2.7 billion, down 1% from the previous year, with market headwinds impacting performance.
Earnings Per Share Decline: Diluted earnings per share for 2024 were $0.96, down from $1.40 in 2023, reflecting the impact of lower gross margin and higher expenses.
Free Cash Flow Decline: Free cash flow for 2024 was $211 million, a significant decrease from $348.3 million in the previous year, attributed to lower operating cash flow and higher capital expenditures.
MBC FAQs
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MBC Earning Call Sentiment
MasterBrand, Inc. (NYSE:MBC) Q4 2024 Earnings Call Transcript
MBC.N
-3.35%Positive
The earnings call revealed several negative factors: decreased net sales and gross profit, increased interest expenses, and cash flow concerns. The Q&A highlighted delayed pricing increases and a negative price/cost situation persisting into Q1. Despite some improvements in February, the overall financial health and lack of share repurchases are concerning. Given these factors, the stock is likely to experience a negative reaction, especially for a small-cap company with a market cap of $1.87 billion.
