Masco Corp. (NYSE: MAS) shares tumbled 7.29% in pre-market trading on Wednesday, as investors reacted to the company's second-quarter results. The decline came despite the company posting a better-than-expected profit, as a miss on the top line and concerns over the broader demand environment weighed on sentiment.
The building products manufacturer reported adjusted earnings per share of $1.64, beating the analyst consensus estimate of $1.32 and marking a 26% increase from the prior-year period. However, quarterly sales of $1.992 billion fell short of the $2.081 billion estimate, representing a 2.9% decline year-over-year. The revenue miss was the primary driver of the pre-market sell-off, as it suggested softer demand in the company's end markets.
Alongside the results, Masco raised its full-year adjusted earnings per share outlook to a range of $4.40 to $4.60, and highlighted an anticipated $85 million net benefit from IEEPA tariff refunds. The company also reported a gross margin of 43.6% and an adjusted EBIT margin of 24.2%. Despite these positive metrics, the top-line shortfall proved to be the dominant factor in the pre-market session.