Masco Corporation (NYSE: NYSE:MAS), with a market cap of $11.22 billion as per InvestingPro data, is set to release its Q3 2023 results on Thursday, October 26th. The company's earnings for the upcoming quarter are projected to be 91 cents per share, representing a year-on-year (YoY) drop of 7.1%. Additionally, revenue is expected to reach $1.981 billion, marking a 10.1% YoY decrease. Notably, according to InvestingPro Tips, analysts anticipate a sales decline in the current year, which aligns with the projected revenue decrease.
In the previous quarter, Masco surpassed the Zacks Consensus Estimate by 24%, leading to a YoY earnings increase of 3%, despite a revenue fall of 10%. The company has had a mixed performance over the last four quarters, exceeding consensus estimates twice and underperforming twice, with an average surprise of 12%. The company's P/E Ratio stands at 14.14, as per InvestingPro data.
The upcoming results are anticipated to be affected by a range of economic factors. Challenges such as rising interest rates, tighter consumer spending, currency fluctuations, and general economic instability could negatively impact earnings and revenues. Inflationary pressures and supply chain disruptions are expected to dent profitability.
Masco's strong brand portfolio and expansion plans may help mitigate some of the negative effects. In Q2, North America and Europe accounted for 66.3% and 33.7% of total revenues respectively. The company's Plumbing Products and Decorative Architectural Products segments were major contributors, accounting for 61.7% and 38.3% of total revenues. Interestingly, the company has been profitable over the last twelve months and analysts predict the company will remain profitable this year, as per InvestingPro Tips.
The company's consolidated adjusted operating margin is predicted to decline by 20 basis points YoY to 15.7%. As such, investors will be closely monitoring Masco's performance in the face of these challenges when it announces its Q3 results later this week. According to InvestingPro, the company has a return on assets of 15.93%, indicating its efficiency in generating profit from its assets.
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