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Livonia, Michigan-based Masco Corporation (MAS) designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally. With a market cap of $18.4 billion, Masco operates through the Plumbing Products and Decorative Architectural Products segments. The building products & equipment manufacturer is expected to release its Q3 earnings before the market opens on Tuesday, Oct. 29.
Ahead of the event, analysts expect Masco to report a profit of $1.08 per share, up 8% from $1.00 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew marginally to $1.20, exceeding the consensus estimates by 3.5%.
For fiscal 2024, analysts expect Masco to report an adjusted EPS of $4.10, up 6.2% from $3.86 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 9.3% year-over-year to $4.48.
MAS has gained 26.6% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 22.9% gains and the Industrial Select Sector SPDR Fund’s (XLI) 22.2% returns during the same time frame.
Shares of Masco soared 7.5% and maintained a positive momentum for the next three trading sessions after the release of its Q2 earnings on July 25. The company has faced several headwinds during the past quarters, including elevated commodity and input prices, employee cost inflations, and lower market demand. Its net sales for the quarter declined 1.7% year-over-year to $2.1 billion, driven by lower volumes for its paints and other coating products as well as an unfavorable sales mix for its plumbing products.
Despite the headwinds, Masco has demonstrated robust operational efficiency by maintaining steady profitability margins.
The consensus opinion on MAS stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 18 analysts covering the stock, eight recommend a “Strong Buy,” one advises a “Moderate Buy,” eight suggest a “Hold,” and one advocate a “Moderate Sell” rating.
Although MAS is trading above its mean price target of $83.50, the Street-high target of $96 suggests a potential upside of 13.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
