Masonite International Q3 Earnings: Can NYSE:DOOR Hit Its $1.78 EPS Target?

in EARNINGS/INVESTING IDEAS by

Masonite International Corporation (NYSE:DOOR) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.

The company is expected to report earnings of $1.78/share on revenue of $583.4 million. The consensus earnings per share (EPS) of $1.78/share is based on a poll of 8 analysts and represents a growth in eps of 65.1% over the same quarter last year, when the company reported earnings of $1.08/share.

The revenue forecast of $583.4 million based on a poll of 6 analysts implies a year-over-year (YoY) growth in revenue of 5.7%. Last year the company reported $552.2 million in revenue for the quarter.

Expected to report EPS growth of 65.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $583.40 $552.19 5.7%
EPS $1.78 $1.08 65.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Masonite International Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.18 $1.50 26.8% Beat
Q1, 2020 $0.62 $1.24 99.7% Beat
Q4, 2019 $0.60 $0.69 15.5% Beat
Q3, 2019 $0.98 $1.08 9.8% Beat
Q2, 2019 $1.15 $1.09 −5.5% Missed
Q1, 2019 $0.74 $0.81 9.6% Beat
Q4, 2018 $0.71 $0.68 −3.7% Missed
Q3, 2018 $1.08 $1.03 −4.2% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 28, 2020, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 3, 2020 $84.35 $84.15 −0.2% Decline
May 5, 2020 $58.65 $59.81 2.0% Increase
February 18, 2020 $80.56 $85.01 5.5% Increase
November 4, 2019 $63.06 $63.02 −0.1% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.02, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.02 implies a 0.1% chance of earnings manipulation.

Fundamentals And Technical Analysis

Masonite International Corporation is currently trading at $93.59/share, down −5.1% for the day. The company is trading at approximately 85.2% of its 52-week high of $109.84/share. The company’s stock price is up 11.2% since the last earnings report and down −8.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 39.53 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:DOOR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 28.49 and a forward P/E multiple of 17.65.

Masonite International Corporation’s current share price also implies a price-to-book (P/B) multiple of 3.60. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 28, 2020
Stock Price (Current) $93.59
P/E Ratio 28.5x
P/E Ratio (Fwd) 17.6x
PEG Ratio 1.0
Total Debt / Total Capital 27.9%
Levered Free Cash Flow $163.1 million
EV / EBITDA 10.6x

Finbox

Masonite International Corporation is a mid-cap stock with a market capitalization of $2.292 billion and a total enterprise value of $3.042 billion. The company operates in the Industrials sector and the Building Products industry.

Masonite International Corporation designs, manufactures, and distributes interior and exterior doors for the new construction and repair, renovation, and remodeling sectors of the residential and non-residential building construction markets worldwide. It offers molded panel, flush, stile and rail, routed medium-density fiberboard (MDF), steel, and fiberglass residential doors, as well as architectural interior doors. The company also provides various door components, including interior door facings, agri-fiber and particleboard door cores, MDF and wood cut-stock components, critical door components, wood veneer door skins, and mineral and particleboard door cores. It offers its products under the Masonite, Premdor, Masonite Architectural, Marshfield-Algoma, Mohawk, Megantic, Solidor, Residor, Nicedor, Door-Stop International, Harring Doors, National Hickman, and Graham-Maiman brands to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors, and architects through wholesale and retail distribution channels. The company was founded in 1925 and is headquartered in Tampa, Florida.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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