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Livonia, Michigan-based Masco Corporation (MAS) designs, manufactures, and distributes home improvement and building products. With a market cap of $14.6 billion, it operates through the Decorative Architectural Products and Plumbing Products segments. Masco’s operations are primarily focused in North America and Europe. It is expected to announce its Q2 earnings before the market opens on Thursday, Jul. 25.
Ahead of the event, analysts expect Masco to report a profit of $1.16 per share, down 2.5% from $1.19 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. Its EPS for the last reported quarter exceeded the consensus estimates by 6.9%.
Looking ahead to fiscal 2024, analysts expect Masco to report an EPS of $4.11, up 6.5% from $3.86 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 10.7% year over year to $4.55.
MAS stock is down 1.2% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 18.1% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 7% returns during the same time frame.
Masco’s stock fell 4.5% after the release of its Q1 earnings on Apr. 24. The company reported a 2.7% decrease in net revenues due to lower volumes and a fall in demand. The company has faced challenges due to elevated commodity and other input costs and employee-related cost inflation. Despite the challenges, Masco has shown operational resilience and maintained liquidity. The company has been consistent with dividend payout and raised it by 1.7% in 2024. Additionally, it repurchased and retired approximately 2.1 million shares in Q1 for roughly $148 million.
The consensus opinion on Masco stock is bullish, with a “Moderate Buy” rating overall. Out of the 17 analysts covering the stock, eight recommend “Strong Buy,” one advises “Moderate Buy,” seven suggest “Hold,” and one has a “Hold” rating.
The average target price of Masco is $79.77, indicating a potential upside of 20.6% from the current price levels.
On the date of publication, Sristi Jayaswal 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.
