Masco (MAS) to Report Q3 Earnings: Here's What to Expect
Masco Corporation MAS is scheduled to report third-quarter 2023 results on Oct 26, before market open.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 24% and increased 3% from the year-ago reported value. On the other hand, net sales topped the consensus mark by 1.5% but declined 10% from the prior-year quarter.
Masco’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, with the average surprise being 12%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 91 cents over the past 60 days. The estimated figure indicates a 7.1% decline from the year-ago level.
Masco Corporation Price and EPS Surprise
Masco Corporation price-eps-surprise | Masco Corporation Quote
For revenues, the consensus mark is pegged at $1,981 million, suggesting a decline of 10.1% from the year-ago quarter’s reported figure.
Factors to Note
Masco’s third-quarter earnings and revenues are expected to have declined year over year due to softness in the housing and repair and remodel markets, likely due to rising interest rates and tighter consumer spending. Moreover, currency fluctuations and economic instability in key markets are additional concerns affecting sales and export business.
The company’s solid brand portfolio, long-term growth initiatives and expansion efforts are expected to partially offset the adverse effects of the headwinds.
Geographically, for third-quarter 2023, our model predicts North America (accounted for 66.3% of second-quarter total revenues) and International, mainly Europe (accounted for 33.7% of second-quarter total revenues) revenues to decline 15% and 4.4% year over year to $775.5 million and $393.7 million, respectively.
Segment-wise, our estimates suggest the Plumbing Products (accounted for 61.7% of second-quarter total revenues) and Decorative Architectural Products segments (accounted for 38.3% of second-quarter total revenues) revenues to have declined 11.7% and 9.5% year over year to $1,169.2 million and $796 million, respectively.
Meanwhile, the company's bottom line is likely to have been affected by inflationary pressure, impacting production costs. Supply chain disruptions, particularly in the availability and pricing of essential commodities, further strain Masco's profitability. For the third quarter, our model predicts consolidated adjusted operating margin to decline 20 basis points year over year to 15.7%.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Masco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Masco has an Earnings ESP of -3.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are some companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat on their respective quarters to be reported.
Howmet Aerospace Inc. HWM has an Earnings ESP of +2.31% and a Zacks Rank #3.
HWM’s earnings topped the consensus mark in two of the last four quarters and met on other two occasions, the average being 3.2%. Earnings for the to-be-reported quarter are expected to grow 19.4% year over year.
Construction Partners, Inc. ROAD has an Earnings ESP of +2.91% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ROAD’s earnings topped the consensus mark in three of the last four quarters, with the average being 10.6%. Earnings for the to-be-reported quarter are expected to rise 108% year over year.
KBR, Inc. KBR has an Earnings ESP of +6.36% and a Zacks Rank #2.
KBR’s earnings topped the consensus mark in all the last four quarters, with the average being 10.8%. Earnings for the to-be-reported quarter are expected to grow 12.3% year over year.
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Masco Corporation (MAS) : Free Stock Analysis Report
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