MasterBrand's Q3 Revenue Surpasses Expectations, But Earnings Per Share Fall Short

NEW YORK - MasterBrand, Inc. (NYSE:MBC) reported that its third-quarter revenue exceeded analyst expectations, although earnings per share fell short of forecasts. The cabinet manufacturer also reiterated its full-year guidance.
MasterBrand announced adjusted earnings per share of $0.40 for the third quarter, which was below the $0.43 analyst consensus. Revenue came in at $718.1 million, surpassing estimates of $670.5 million and reflecting a 6% increase compared to the same period last year.
The company stated that the revenue increase was driven by a 9% growth resulting from the Supreme acquisition but was partially offset by a 3% decline in average selling prices. Volume and foreign exchange had no impact on year-over-year performance.
Gross profit margin declined by 200 basis points to 33.1%. The company attributed this drop to lower average selling prices, labor and shipping inflation, and the absence of one-time benefits from the previous year. This decline was partially offset by cost-saving initiatives.
CEO Dave Banyard expressed satisfaction in stating, "We are pleased to announce that our financial performance in the third quarter aligns with our expectations. We continued to manage fluctuations in our end markets during this period."
MasterBrand reiterated its adjusted earnings per share forecast for the full year at between $1.50 and $1.62. This figure is above the consensus estimate of $1.49. The company anticipates low single-digit percentage revenue growth for the year.