NEW YORK (TheStreet) -- Masco (MAS) - Get Report was the best-performing stock in the S&P 500 on Tuesday and wrapped up the session with a 10.7% gain thanks to better-than-expected second-quarter earnings.
Net income came in at 38 cents a share ahead of the 36 cents analysts expected. The company's sales totaled $1.9 billion, a 3% year-over-year rise, but missed estimates of $2.2 billion. Stripping out foreign exchange headwinds, revenue would have risen 7%.
The Taylor, Mich.-based company saw sales in North America advance 7%. International sales slumped 10% in U.S. dollars but gained 5% when measured in local currency. The building materials maker announced plans to bump its annual dividend by 2 cents a share to 38 cents by the fourth quarter.
"Masco has delivered a strong first half of the year and we are proud of our focus and execution," said Masco President and CEO Keith Allman. "For the balance of 2015, we believe the underlying demand for our market-leading products will increase and that the repair and remodeling environment will continue to improve. We believe we are positioned to capitalize on these opportunities."
The analysts at RBC Capital Markets held an outperform rating with a $27.25 price target. Jefferies maintained a buy rating with a $28 price target, while Robert W. Baird & Co. analysts held a neutral rating and a $25 target. The stock closed Tuesday at $25.63 and reached an all-time high for the year during the day.
TheStreet Ratings team rates MASCO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MASCO CORP (MAS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: MAS Ratings Report