Yahoo Finance Masco (MAS) to Report Q1 Earnings: Here's What to Expect
Masco Corporation MAS is scheduled to report first-quarter 2023 results on Apr 26, before market open.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1.5% and were down by 2 cents from the year-ago reported value. On the other hand, net sales topped the consensus mark by 0.5% but declined 4.9% from the prior-year quarter.
Masco’s earnings topped the consensus mark in one of the last four quarters and missed on the other three occasions, with the average negative surprise being 1.6%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 65 cents over the past 30 days. The estimated figure indicates a 31.6% decline from the year-ago level.
Masco Corporation Price and EPS Surprise
Masco Corporation price-eps-surprise | Masco Corporation Quote
For revenues, the consensus mark is pegged at $1,919 million, suggesting a decline of 12.8% from the year-ago quarter’s reported figure.
Factors at Play
Masco is likely to have witnessed lower earnings and revenues on a year-over-year basis in first-quarter 2023. The slowdown in the housing and repair and remodel markets and tighter consumer spending are likely to have ailed Masco’s revenue performance. The bottom line is expected to have been dented by intense inflationary pressure, particularly on commodities and logistics and supply-chain issues in the quarter to be reported. Also, inflation is likely to have increased for raw materials, freight and labor.
For first-quarter 2023, our model predicts North America and International (mainly Europe) revenues to decline 15.4% and 19% year over year to $754.8 million and $378.3 million, respectively. Also, Plumbing Products and Decorative Architectural Products segment revenues are likely to decline 16.6% and 8% year over year to $1,133.1 million and $775 million, respectively.
The bottom line of the company is likely to have been affected by lower volumes, foreign currency risks and high operational costs. These costs are expected to have a negative impact on the company’s operations and hurt margins in the to-be-reported quarter. For the first quarter, our model predicts consolidated adjusted operating margin to decline 350 basis points year over year.
What the Zacks Model Unveils
Our proven model doesn’t 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.
Earnings ESP: Masco has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Construction sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
Trex Company, Inc. TREX has an Earnings ESP of +11.34% and a Zacks Rank #3.
Shares of Trex Company have declined 12.5% in the past year. TREX’s earnings beat the estimates in three of the trailing four quarters and missed once, the average surprise being 7.2%.
United Rentals, Inc. URI has an Earnings ESP of +4.51% and a Zacks Rank #3.
Shares of United Rentals have increased 19% in the past year. URI’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Owens Corning OC has an Earnings ESP of +3.18% and a Zacks Rank #3.
Shares of Owens Corning have increased 15.1% in the past year. OC’s earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 12.9%.
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Masco Corporation (MAS) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
Trex Company, Inc. (TREX) : Free Stock Analysis Report
