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In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 25.8% and rose 27.7% year over year. Net sales beat the consensus mark by 6% but declined 2% year over year.
Masco’s earnings topped the consensus mark in the last four quarters, with the average surprise being 23.4%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Masco’s first-quarter earnings per share (EPS) is pegged at 87 cents, flat from the year-ago quarter. The estimated figure has moved up by 1 cent in the past 60 days, reflecting analysts’ optimism.
The consensus estimate for net sales is pegged at $1.95 billion, indicating a 1.6% decrease from the prior-year quarter’s figure of $1.98 billion.
Factors to Note
Masco’s first-quarter earnings are expected to have remained stable but net sales are likely to have declined, as demand in Europe and China is still challenged. Moreover, currency fluctuations and economic instability in key markets are additional concerns affecting sales and export business.
Segment-wise, our estimates suggest the Plumbing Products (which accounted for 60.8% of fourth-quarter 2023 total revenues) and Decorative Architectural Products segments’ (which accounted for 39.2% in the fourth quarter) revenues have declined 2.6% and 1% year over year to $1.19 billion and $749.1 million, respectively.
Geographically, our model predicts North America (which accounted for 80.1% of fourth-quarter 2023 total revenues) and International, mainly Europe (which accounted for 19.9%) revenues have declined 1.1% and 5.4% year over year to $1.54 billion and $400.9 million, respectively.
Nonetheless, the company’s solid brand portfolio, long-term growth initiatives and expansion efforts are expected to partially offset the adverse effects of these headwinds.
Meanwhile, the company's bottom line is likely to have aided in a favorable price/cost relationship and cost-saving initiatives. For the first quarter of 2024, our model predicts the consolidated adjusted EBITDA margin to expand 30 basis points year over year to 17.8%.
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. That is not the case here.
Currently, MAS has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
LPX’s earnings for the to-be-reported quarter are expected to have increased 232.4% year over year. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 106.2%.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.22% and carries a Zacks Rank of 3.
BCC’s earnings for the to-be-reported quarter are expected to decline 5.8%. The company reported better-than-expected earnings in three of the last four quarters but missed on one occasion, the average surprise being 20.4%.
United Rentals, Inc. (URI - Free Report) has an Earnings ESP of +2.71% and carries a Zacks Rank #2.
URI’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average being 3.1%. Earnings for the to-be-reported quarter are expected to grow 5% year over year.
Image: Bigstock
What's in the Cards for Masco (MAS) This Earnings Season?
Masco Corporation (MAS - Free Report) is slated to report first-quarter 2024 results on Apr 24, before the opening bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 25.8% and rose 27.7% year over year. Net sales beat the consensus mark by 6% but declined 2% year over year.
Masco’s earnings topped the consensus mark in the last four quarters, with the average surprise being 23.4%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Masco’s first-quarter earnings per share (EPS) is pegged at 87 cents, flat from the year-ago quarter. The estimated figure has moved up by 1 cent in the past 60 days, reflecting analysts’ optimism.
Masco Corporation Price and EPS Surprise
Masco Corporation price-eps-surprise | Masco Corporation Quote
The consensus estimate for net sales is pegged at $1.95 billion, indicating a 1.6% decrease from the prior-year quarter’s figure of $1.98 billion.
Factors to Note
Masco’s first-quarter earnings are expected to have remained stable but net sales are likely to have declined, as demand in Europe and China is still challenged. Moreover, currency fluctuations and economic instability in key markets are additional concerns affecting sales and export business.
Segment-wise, our estimates suggest the Plumbing Products (which accounted for 60.8% of fourth-quarter 2023 total revenues) and Decorative Architectural Products segments’ (which accounted for 39.2% in the fourth quarter) revenues have declined 2.6% and 1% year over year to $1.19 billion and $749.1 million, respectively.
Geographically, our model predicts North America (which accounted for 80.1% of fourth-quarter 2023 total revenues) and International, mainly Europe (which accounted for 19.9%) revenues have declined 1.1% and 5.4% year over year to $1.54 billion and $400.9 million, respectively.
Nonetheless, the company’s solid brand portfolio, long-term growth initiatives and expansion efforts are expected to partially offset the adverse effects of these headwinds.
Meanwhile, the company's bottom line is likely to have aided in a favorable price/cost relationship and cost-saving initiatives. For the first quarter of 2024, our model predicts the consolidated adjusted EBITDA margin to expand 30 basis points year over year to 17.8%.
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. That is not the case here.
Currently, MAS has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +3.56% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LPX’s earnings for the to-be-reported quarter are expected to have increased 232.4% year over year. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 106.2%.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.22% and carries a Zacks Rank of 3.
BCC’s earnings for the to-be-reported quarter are expected to decline 5.8%. The company reported better-than-expected earnings in three of the last four quarters but missed on one occasion, the average surprise being 20.4%.
United Rentals, Inc. (URI - Free Report) has an Earnings ESP of +2.71% and carries a Zacks Rank #2.
URI’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average being 3.1%. Earnings for the to-be-reported quarter are expected to grow 5% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.