- Masco’s first quarter adjusted earnings per share (EPS) was $0.87, missing the estimate of $0.92 and down from $0.93 in the previous year.
- The company’s net sales reached $1.80 billion, which is a 6.5% decrease year-over-year, and below the estimated $1.83 billion.
- Plumbing segment net sales were slightly down at $1.19 billion, but still slightly above the estimated $1.18 billion.
- Sales in the Decorative Architectural Products segment dropped by 16% year-over-year to $617 million, missing the estimate of $647.7 million.
- The adjusted operating margin was 16%, down from 16.7% last year and trailing the estimate of 16.5%.
- Plumbing Products adjusted operating margin was slightly lower at 18.5%, compared to 19.1% last year and an estimate of 18.6%.
- The Decorative Architectural Products adjusted operating margin fell to 15.6%, below the previous year’s 17% and the estimate of 17%.
- Adjusted gross margin improved slightly to 35.9% from 35.7% last year, surpassing the estimate of 35.7%.
- Adjusted EBITDA was $322 million, reflecting an 11% decline year-over-year, lower than the estimate of $341 million.
- General corporate expenses decreased by 13% year-over-year to $27.0 million, better than the estimated $27.8 million.
- The company is not providing full-year 2025 financial guidance due to uncertainty related to tariffs and macroeconomic conditions.
- Masco’s management is working on cost mitigation strategies, including pricing actions, cost savings, and sourcing adjustments.
- The market consensus shows 10 buy ratings, 13 hold ratings, and 1 sell rating for Masco’s stock.
Masco Corp on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Masco Corporation following their coverage of the company’s recent fiscal year results and strategic initiatives. Despite a 3% decrease in fourth-quarter revenue mainly due to divestiture, adjusted sales showed a slight 1% increase, driven by growth in the decorative architectural segment. The in-depth analysis provides potential investors with a comprehensive view of Masco’s performance and trajectory in the $88 billion R&R market.
In another report, Baptista Research delves into Masco Corporation’s management strategies in tackling economic fluctuations and market sensitivity risks. The company’s solid operational performance in the third quarter of 2024, particularly in plumbing and decorative architectural products, amidst a challenging economic environment, has impressed analysts. With a focus on evaluating influencing factors and conducting an independent valuation using a Discounted Cash Flow methodology, Baptista Research highlights Masco’s resilience and growth potential in the face of market uncertainties.
A look at Masco Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores for Masco Corp, the company shows a promising long-term outlook. With strong ratings in Growth and Resilience, Masco Corp is anticipated to continue expanding and weathering market challenges effectively. This indicates a potential for sustained development and the ability to endure unforeseen economic fluctuations.
Although Masco Corp lags in Value and Dividend scores, its solid ratings in Growth and Resilience are likely to drive future performance. Additionally, having a moderate score in Momentum suggests a steady and gradual upward trend. Overall, Masco Corp, a company specializing in home improvement and building products, appears well-positioned for long-term success in the ever-evolving market landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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