Home-building design and manufacturing company Masco Corporation (NYSE: MAS) will be reporting earnings tomorrow before market open. Here’s what you need to know.
Masco missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $1.83 billion, down 2.8% year on year. It was a mixed quarter for the company, with organic revenue in line with analysts’ estimates but full-year EPS guidance missing analysts’ expectations.
Is Masco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Masco’s revenue to decline 4.6% year on year to $1.84 billion, a further deceleration from the 2.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Masco has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Masco’s peers in the building products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Insteel delivered year-on-year revenue growth of 26.1%, beating analysts’ expectations by 7.2%, and Valmont reported flat revenue, falling short of estimates by 0.6%. Insteel traded up 13.9% following the results.
Read our full analysis of Insteel’s results here and Valmont’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the building products stocks have shown solid performance, the group has generally underperformed, with share prices down 11.3% on average over the last month. Masco is down 15.5% during the same time and is heading into earnings with an average analyst price target of $79.14 (compared to the current share price of $60.10).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
