Masco Corporation MAS is scheduled to report fourth-quarter 2024 results on Feb. 11, before the opening bell.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company’s adjusted earnings met the Zacks Consensus Estimate while the net sales marginally topped the same by 0.1%. On a year-over-year basis, both the metrics grew 8% and 0.2%, respectively.

Masco’s earnings topped the consensus mark in three of the last four quarters and met on the remaining occasion, the average surprise being 9%.

The Trend in MAS’ Estimate Revision

The Zacks Consensus Estimate for adjusted earnings per share (EPS) has remained unchanged at 88 cents over the past 60 days. The estimated figure indicates 6% growth from the year-ago EPS of 83 cents.

The consensus estimate for net sales is pegged at $1.84 billion, which indicates a 2.2% decline from the prior-year quarter’s figure of $1.88 billion.

Factors Likely to Define Masco’s Q4 Results

Revenues

The top line of Masco is expected to have moved down year over year due to lower contributions from the Decorative Architectural Products segment, which reflects decreased DIY paint sales. Also, an unfavorable sales mix under the Plumbing Products segment is likely to have added to the downtrend.

However, the higher sales volume of the Plumbing Products segment is likely to have somewhat aided the top line of the company during the quarter. Furthermore, growth signs in Masco’s key markets of Europe and China are likely to have benefited the sales volume to some extent.

Segment-wise, our model expects the Plumbing Products segment’s (which accounted for 61.5% of third-quarter 2024 total net sales) net sales to increase 1.4% year over year to $1.22 billion. However, the expectations for the Decorative Architectural Products segment’s (which accounted for 38.5% of total net sales in the third quarter) net sales indicate an 8.3% decline year over year to $622.1 million.

Geographically, we expect net sales in North America (which accounted for 80.4% of third-quarter total net sales) to decline 2.9% year over year to $1.46 billion. Net sales in International (which accounted for 19.6% of third-quarter total net sales) are anticipated to increase year over year by 1.5% to $378.4 million.

Margins

The bottom line of Masco is also expected to have increased year over year thanks to its focus on cost-saving initiatives. Although unfavorable sales mix, higher marketing and employee-related costs and ongoing inflationary pressures are likely to have been headwinds to some extent, the tailwinds mentioned above paired with Masco’s focus on ensuring strong operational efficiency and productivity are likely to have aided the margins.

Our model predicts adjusted EBITDA (earnings before interest, tax, depreciation and amortization) to expand year over year by 140 basis points to 18.1%.

What Our Model Unveils for MAS

Our proven model does not 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. That is not the case here.

Earnings ESP: MAS has an Earnings ESP of -0.98%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Frontdoor, Inc. FTDR currently has an Earnings ESP of +60.00% and a Zacks Rank of 1.

FTDR’s earnings for the fourth quarter of 2024 are expected to decline 45%. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 269%.

Trex Company, Inc. TREX has an Earnings ESP of +20.00% and a Zacks Rank of 2.

TREX reported better-than-expected earnings in each of the last four quarters, the average surprise being 9%. The company’s earnings for the fourth quarter of 2024 are expected to decrease 75%.

Watsco, Inc. WSO currently has an Earnings ESP of +0.94% and a Zacks Rank of 2.

WSO’s earnings for the fourth quarter of 2024 are expected to increase 3.4%. The company reported lower-than-expected earnings in each of the last four quarters, the negative average surprise being 10%.

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