Masco Corporation MAS is set to unveil its performance in the fourth quarter of 2023 on Feb 8, before the markets open for trading.
In the previous quarter, the firm’s earnings surpassed the Zacks Consensus Estimate by 9.9% and experienced a 1% year-over-year increase. Conversely, net sales slightly fell short of the consensus mark and dropped by 10% year over year.
Over the last four quarters, Masco surpassed the consensus mark in three of them, with an average surprise of 16.6%.
Estimate Revision Trends
The Zacks Consensus Estimate for Masco’s fourth-quarter earnings is projected at 66 cents per share, signifying a 1.5% climb from the reported figure of 65 cents in the year-ago quarter.
Masco Corporation Price and EPS Performance
Masco Corporation price-eps-surprise | Masco Corporation Quote
The consensus estimate for net sales is pegged at $1.77 billion, indicating a 7.7% decrease from the prior-year quarter’s figure.
Key Considerations
In the fourth quarter, Masco’s earnings are anticipated to have marginally improved despite a year-over-year net sales decline due to business softness. However, concerns regarding currency fluctuations and economic instability in key markets are impacting sales and export business. Nevertheless, the company’s robust brand portfolio, long-term growth plans, and expansion endeavors are expected to offset some of these challenges.
Geographically, we anticipate a 9.6% decline in North America revenues and a 5.1% decrease in International – mainly Europe – revenues. Furthermore, we foresee a 9.1% and 8.1% year-over-year decrease in Plumbing Products and Decorative Architectural Products segments’ revenues, respectively.
Conversely, the company’s bottom line is likely to have improved slightly due to a favorable price/cost relationship and cost-saving initiatives. For the fourth quarter, our model predicts a 90 basis points expansion in the consolidated adjusted operating margin to 13.1%.
Zacks Model Insights
Our proven model does not definitively predict that Masco will beat earnings this time. The combination of a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 boosts the chances of an earnings beat. However, Masco currently holds a Zacks Rank of 4 and an Earnings ESP of -1.25%.
Always stay updated on upcoming earnings announcements with the Zacks Earnings Calendar.
Stocks With a Bright Outlook
Several companies in the Zacks Construction sector seem to have the right combination to surpass earnings estimates in the upcoming quarters. These include Louisiana-Pacific Corporation (LPX), Vulcan Materials Company (VMC), and Floor & Decor Holdings, Inc. (FND).
For the complete list of Zacks #1 Rank (Strong Buy) stocks, see here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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