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Masco Corporation (MAS), headquartered in Livonia, Michigan, is a global leader in designing, manufacturing, and distributing home improvement and building products that enhance living spaces worldwide. With a market cap of $16.9 billion, Masco leverages its legacy of innovation and quality craftsmanship to deliver a diverse portfolio of trusted brands that meet the evolving needs of consumers and professionals. The company is set to release its Q4 earnings before the market opens on Tuesday, Feb. 11.
Ahead of the event, analysts expect Masco to report a profit of $0.88 per share, up 6% from $0.83 per share reported in the year-ago quarter. The company has consistently surpassed or matched Wall Street’s adjusted EPS projections in each of the past four quarters. In Q3, the company reported an EPS of $1.08, which met the consensus estimate.
For fiscal 2024, analysts expect Masco to report an adjusted EPS of $4.09, up 6% from $3.86 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 8.1% year-over-year to $4.42.
Masco’s shares have gained 15.6% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 25% gains and the Industrial Select Sector SPDR Fund’s (XLI) 25% returns over the same time frame.
Masco saw its shares decline for three consecutive trading sessions following the release of its Q3 earnings on Oct. 29. The company reported revenue of $1.98 billion, meeting expectations but remaining flat year over year. EBITDA came in slightly below estimates at $397 million, with margins holding steady at 20%.
However, profitability faced pressure, as gross margin declined to 36.6% from 37.6%, and operating margin fell to 18% from 19.4% in the prior year. Additionally, the free cash flow margin weakened to 19.1%, down from 21.8% in the same period last year.
The consensus opinion on MAS stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 19 analysts covering the stock, eight recommend a “Strong Buy,” 10 suggest a “Hold,” and one advocates a “Moderate Sell” rating.
The mean price target of $84.32 suggests a potential upside of 7.2% from current price levels.
