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In the last-reported quarter, MAS’ earnings missed the Zacks Consensus Estimate by 8.4% and were down by a cent from the year ago. Net sales missed the consensus mark by 2.7% but remained flat from the prior-year quarter.
Masco’s earnings topped the consensus mark in one of the last four quarters and missed on other three occasions, with the average negative surprise being 2.6%.
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has declined to 66 cents from 67 cents over the past 30 days. The estimated figure indicates a 1.5% decline from the year-ago level. The consensus estimate for net sales is pegged at $1.91 billion, indicating a 5.4% increase from the prior-year quarter’s reported figure.
Factors to Note
Masco is likely to have generated lower earnings and revenues on a year-over-year basis in fourth-quarter 2022. The slowdown in the housing and repair and remodel markets is likely to have ailed MAS’ top-line performance. The bottom line is expected to have been dented by intense inflationary pressure, particularly on commodities and logistics and supply-chain issues in the quarter to be reported. Also, inflation is likely to have increased for raw materials, freight and labor.
Apart from the above-mentioned costs, MAS persistently incurs expenses related to product launches and acquisitions. Overall, the company expects lower market demand, elevated operational costs and additional foreign currency headwinds in the fourth quarter due to the evolving market conditions. Owing to these challenges, the company expects full-year adjusted earnings per share guidance to be $3.70-$3.80 per share. In 2021, the company reported $3.70 in earnings per share.
The Zacks Consensus Estimate for Plumbing Products’ sales of $1,143 million indicates a 6.9% decrease from the year-ago quarter’s reported figure. The same for the Decorative Architectural Products segment’s sales is currently pegged at $782 million, calling for a 1.5% decrease from the year-earlier quarter’s reported number.
The consensus mark for Plumbing Products’ non-GAAP operating profit is pegged at $170 million, suggesting 9% growth from the prior-year quarter’s reported figure. The same for Decorative Architectural Products’ non-GAAP operating profit is pegged at $103 million, implying a 22% decline from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, MAS has an Earnings ESP of -1.94% and a Zacks Rank #4 (Sell).
Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.90% and carries a Zacks Rank #3.
BCC’s earnings topped the consensus mark in all the last four quarters, with the average surprise being 30.9%.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and carries a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one of the last four quarters but missed on three occasions, with the average negative surprise being 38.2%.
Recent Construction Release
Weyerhaeuser Company (WY - Free Report) reported fourth-quarter 2022 results, wherein its earnings beat the Zacks Consensus Estimate, and the same declined from the year-ago period's levels. The quarter’s performance reflects strong execution across the businesses, which was offset by macroeconomic headwinds, supply chain disruptions and dynamic market conditions.
On an impressive note, WY unveiled a 90 cents per share supplemental dividend. The company also increased its base dividend by 5.9%, repurchased $550 million in shares and refinanced $900 million of debt.
Image: Shutterstock
Masco (MAS) Q4 Earnings to be Hit by Soft Demand & High Cost
Masco Corporation (MAS - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 9, before the opening bell.
In the last-reported quarter, MAS’ earnings missed the Zacks Consensus Estimate by 8.4% and were down by a cent from the year ago. Net sales missed the consensus mark by 2.7% but remained flat from the prior-year quarter.
Masco’s earnings topped the consensus mark in one of the last four quarters and missed on other three occasions, with the average negative surprise being 2.6%.
Masco Corporation Price and EPS Surprise
Masco Corporation price-eps-surprise | Masco Corporation Quote
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has declined to 66 cents from 67 cents over the past 30 days. The estimated figure indicates a 1.5% decline from the year-ago level. The consensus estimate for net sales is pegged at $1.91 billion, indicating a 5.4% increase from the prior-year quarter’s reported figure.
Factors to Note
Masco is likely to have generated lower earnings and revenues on a year-over-year basis in fourth-quarter 2022. The slowdown in the housing and repair and remodel markets is likely to have ailed MAS’ top-line performance. The bottom line is expected to have been dented by intense inflationary pressure, particularly on commodities and logistics and supply-chain issues in the quarter to be reported. Also, inflation is likely to have increased for raw materials, freight and labor.
Apart from the above-mentioned costs, MAS persistently incurs expenses related to product launches and acquisitions. Overall, the company expects lower market demand, elevated operational costs and additional foreign currency headwinds in the fourth quarter due to the evolving market conditions. Owing to these challenges, the company expects full-year adjusted earnings per share guidance to be $3.70-$3.80 per share. In 2021, the company reported $3.70 in earnings per share.
The Zacks Consensus Estimate for Plumbing Products’ sales of $1,143 million indicates a 6.9% decrease from the year-ago quarter’s reported figure. The same for the Decorative Architectural Products segment’s sales is currently pegged at $782 million, calling for a 1.5% decrease from the year-earlier quarter’s reported number.
The consensus mark for Plumbing Products’ non-GAAP operating profit is pegged at $170 million, suggesting 9% growth from the prior-year quarter’s reported figure. The same for Decorative Architectural Products’ non-GAAP operating profit is pegged at $103 million, implying a 22% decline from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, MAS has an Earnings ESP of -1.94% and a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.90% and carries a Zacks Rank #3.
BCC’s earnings topped the consensus mark in all the last four quarters, with the average surprise being 30.9%.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and carries a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one of the last four quarters but missed on three occasions, with the average negative surprise being 38.2%.
Recent Construction Release
Weyerhaeuser Company (WY - Free Report) reported fourth-quarter 2022 results, wherein its earnings beat the Zacks Consensus Estimate, and the same declined from the year-ago period's levels. The quarter’s performance reflects strong execution across the businesses, which was offset by macroeconomic headwinds, supply chain disruptions and dynamic market conditions.
On an impressive note, WY unveiled a 90 cents per share supplemental dividend. The company also increased its base dividend by 5.9%, repurchased $550 million in shares and refinanced $900 million of debt.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.