Home-building design and manufacturing company Masco Corporation (NYSE: MAS) will be reporting earnings this Wednesday before market hours. Here’s what to look for.
Masco beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $2.05 billion, down 1.9% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Masco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Masco’s revenue to decline 1.9% year on year to $1.95 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.03 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 five times over the last two years.
Looking at Masco’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3.1%, and Apogee reported revenues up 4.6%, topping estimates by 2.1%. Apogee traded down 4.5% following the results.
Read our full analysis of Simpson’s results here and Apogee’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.8% on average over the last month. Masco is down 2.5% during the same time and is heading into earnings with an average analyst price target of $75.58 (compared to the current share price of $68.32).
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