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  • Professor Andrea M. Armani, University of Southern California
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  • Professor Stefan Witte, Delft University of Technology

Masco (MAS) Q2 Earnings Report Preview: What To Look For

MAS Cover Image

Home-building design and manufacturing company Masco Corporation (NYSE: MAS) will be reporting results this Thursday before the bell. Here’s what to expect.

Masco missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $1.80 billion, down 6.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

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 4.3% year on year to $2.00 billion, a further deceleration from the 1.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.08 per share.

Masco Total Revenue

The majority of analysts covering the company have 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 five times over the last two years.

Looking at Masco’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 5.3%, and Lennox reported revenues up 3.4%, topping estimates by 2.5%. Simpson traded up 10.7% following the results while Lennox was also up 7.2%.

Read our full analysis of Simpson’s results here and Lennox’s results here.

There has been positive sentiment among investors in the building products segment, with share prices up 5.5% on average over the last month. Masco is up 2.9% during the same time and is heading into earnings with an average analyst price target of $70.27 (compared to the current share price of $66.25).

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