Company Performance - Masco Corporation (MAS) reported adjusted earnings per share (EPS) of 87 cents, missing the Zacks Consensus Estimate of 92 cents by 5.4%, and down from 93 cents in the prior-year quarter [4] - Net sales were $1.8 billion, falling short of the consensus mark of $1.84 billion by 1.9% and declining 6% year over year; excluding divestitures, net sales decreased 3% in local currency [4] - The adjusted operating margin contracted 60 basis points year over year to 18.5%, with adjusted EBITDA at $245 million compared to $255 million in the prior-year quarter [7] Segment Analysis - Plumbing Products segment net sales declined 1% year over year to $1.18 billion, with North American sales up 2% and international sales flat in local currency [6] - Decorative Architectural Products segment reported sales of $617 million, down 16% from the prior-year period; total paint sales decreased in mid-single digits, while PRO paint sales increased in the mid-single digits [8] Financial Position - As of March 31, 2025, Masco had total liquidity of $1.246 billion, down from $1.31 billion a year earlier, with cash and cash investments of $377 million and long-term debt of $2.95 billion [13] - The company repurchased 1.8 million shares for about $130 million and returned $66 million to shareholders in dividends during the reported period [13] Market Environment - The disappointing performance is attributed to a challenging macroeconomic and geopolitical environment, including new tariffs; Masco is implementing pricing adjustments and cost-saving initiatives to address rising cost pressures [2] - Management has refrained from providing full-year 2025 financial guidance due to ongoing uncertainty regarding external developments affecting industry demand and pricing dynamics [3]

Core Insights - Masco (MAS) reported $1.8 billion in revenue for Q1 2025, a year-over-year decline of 6.5% and below the Zacks Consensus Estimate of $1.84 billion, resulting in a surprise of -1.91% [1] - The company's EPS for the quarter was $0.87, down from $0.93 a year ago, with an EPS surprise of -5.43% compared to the consensus estimate of $0.92 [1] Financial Performance Metrics - Decorative Architectural Products net sales were $617 million, below the estimated $665.29 million, reflecting a -15.9% change year-over-year [4] - Plumbing Products net sales were $1.19 billion, slightly above the estimated $1.18 billion, with a year-over-year decline of -0.6% [4] - Adjusted operating profit for Plumbing Products was $219 million, close to the estimated $220.91 million, while for Decorative Architectural Products it was $96 million, below the estimated $117.35 million [4] - Reported operating profit for Plumbing Products was $217 million, compared to the estimated $229.70 million, and for Decorative Architectural Products it was $96 million, below the estimated $123.89 million [4] Stock Performance - Masco's shares have returned -12.7% over the past month, underperforming the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Masco (MAS) reported quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.92 per share, and down from $0.93 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -5.43%, with the company previously expected to post earnings of $0.88 per share but actually producing $0.89, resulting in a surprise of 1.14% [2] - Masco's revenues for the quarter were $1.8 billion, missing the Zacks Consensus Estimate by 1.91%, and down from $1.93 billion year-over-year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2][3] Stock Performance - Masco shares have declined approximately 15.4% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [4] - The current Zacks Rank for Masco is 4 (Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.22 on revenues of $2.03 billion, and for the current fiscal year, it is $4.25 on revenues of $7.7 billion [8] - The estimate revisions trend for Masco is currently unfavorable, which could change following the recent earnings report [7] Industry Context - The Building Products - Miscellaneous industry, to which Masco belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [9]

Core Viewpoint - Masco Corporation is expected to report a decline in both adjusted earnings per share and net sales for the first quarter of 2025, primarily due to lower demand in key product segments and ongoing inflationary pressures [1][2][6]. Financial Performance - The adjusted earnings per share (EPS) estimate remains unchanged at 92 cents, reflecting a 1.1% decline from the previous year's EPS of 93 cents [2]. - The consensus estimate for net sales is projected at $1.84 billion, indicating a 4.7% decrease from $1.93 billion in the same quarter last year [2]. Segment Performance - The Plumbing Products segment, which constituted 65% of total net sales in Q4 2024, is expected to see a 1.9% year-over-year decline in net sales to $1.17 billion [4]. - The Decorative Architectural Products segment, accounting for 35% of total net sales in Q4 2024, is anticipated to experience an 8% decline year-over-year to $675.3 million [4]. Geographic Performance - Net sales in North America, which represented 79.2% of total net sales in Q4 2024, are expected to decline by 3.8% year-over-year to $1.47 billion [5]. - International net sales, making up 20.8% of total net sales in Q4 2024, are projected to decrease by 5.7% year-over-year to $377.2 million [5]. Cost and Economic Factors - The company's bottom line is likely to be adversely affected by high costs, unfavorable sales mix, increased marketing and employee-related expenses, and persistent inflationary pressures [6]. - Despite implementing strategic cost-saving initiatives, commodity cost inflation continues to pose challenges [6]. Earnings Prediction - The current model does not predict an earnings beat for Masco, as it has an Earnings ESP of -0.82% and a Zacks Rank of 4 (Sell) [7].

Core Viewpoint - The market anticipates a year-over-year decline in Masco's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - Masco is expected to report quarterly earnings of $0.92 per share, reflecting a -1.1% change year-over-year, and revenues are projected at $1.84 billion, down 4.7% from the previous year [3]. - The consensus EPS estimate has been revised 1.36% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Masco is lower than the consensus estimate, resulting in an Earnings ESP of -0.82% [10][11]. - A negative Earnings ESP reading, combined with a Zacks Rank of 4, complicates the prediction of an earnings beat for Masco [11]. Historical Performance - In the last reported quarter, Masco was expected to post earnings of $0.88 per share but delivered $0.89, resulting in a surprise of +1.14% [12]. - Over the past four quarters, Masco has beaten consensus EPS estimates three times [13]. Conclusion - Masco does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Company Overview - Masco (MAS) shares increased by 8.6% to close at $63.77, following President Trump's announcement to suspend U.S. tariffs for 90 days, which renewed investor optimism [1] - The stock had previously experienced a 17.7% loss over the past four weeks [1] Earnings Expectations - Masco is expected to report quarterly earnings of $0.93 per share, unchanged from the same quarter last year [2] - Revenue is projected to be $1.84 billion, reflecting a 4.5% decrease from the year-ago quarter [2] Earnings Estimate Revisions - The consensus EPS estimate for Masco has been revised marginally higher over the last 30 days, indicating a positive trend that typically correlates with price appreciation [4] - The stock currently holds a Zacks Rank of 3 (Hold) [4] Industry Context - Masco is part of the Zacks Building Products - Miscellaneous industry, which includes Gibraltar Industries (ROCK) [4] - Gibraltar Industries closed the last trading session up 9.8% at $56.40, but has returned -22% over the past month [4][5] - Gibraltar's consensus EPS estimate remains unchanged at $0.86, representing a 7.5% increase from the previous year [5]

Core Insights - Behr Paint Company has announced Cedar as the 2025 Exterior Stain Colour of the Year, reflecting a trend where 76% of Canadian homeowners plan to undertake exterior renovations in 2025 [1] - A significant 66% of homeowners prefer updating their home's exterior rather than selling it this year, indicating a shift towards home improvement [1] Company Overview - Behr Paint Company, founded in 1947, is a leading manufacturer of paints, primers, and stains in North America, dedicated to meeting the needs of DIYers and professionals [5] - The company offers a variety of products, including BEHR PREMIUM® Solid Colour Waterproofing Exterior Stain and BEHR® DECKPLUS®, exclusively available at The Home Depot Canada [4] Market Trends - The launch of Cedar coincides with a growing consumer preference for natural, earthy tones in home design, as 78% of homeowners are open to painting their home's exterior a different color [2] - Nearly half (48%) of homeowners feel overwhelmed by the factors involved in choosing exterior paint, prompting Behr to curate a collection of 45 trending colors to simplify the selection process [2] Product Offerings - The Curb Appeal Collection features four sub-palettes designed to cater to different design styles: Classic Haven, Modern Escape, Casual Oasis, and Artisan Retreat, each offering a unique aesthetic for homeowners [5] - Cedar's warm and earthy light golden-brown tone is designed to complement various architectural styles, enhancing the natural beauty of wood surfaces [3]

Core Insights - Behr Paint Company has announced Cedar as its 2025 Exterior Stain Color of the Year, reflecting a trend towards natural, earthy tones among homeowners [1][2][4] - A significant 82% of homeowners are opting to enhance their current homes rather than purchasing new ones, indicating a strong market for home improvement products [1][4] Company Initiatives - The company is launching its second annual Curb Appeal Collection, featuring 45 exterior paint shades that cater to various design preferences, from earthy tones to vibrant colors [2][3][4] - Behr aims to simplify the color selection process for homeowners, addressing the concern that 51% find too many factors complicate their exterior paint choices [4] Product Details - Cedar is described as a warm, light golden-brown that enhances the natural beauty of wood and complements various architectural styles [5] - The Curb Appeal Collection includes four sub-palettes: Classic Haven, Modern Escape, Casual Oasis, and Artisan Retreat, each designed to evoke different atmospheres and aesthetics [6] Market Research - A study commissioned by Behr revealed that 71% of U.S. homeowners plan to update their home exteriors with stain, and 81% with paint in 2025 [1][9] - The survey included 1,000 American homeowners, balanced across demographics, with a margin of error of +/- 3 percentage points [9]

Core Insights - Behr Paint Company has announced Cedar as the 2025 Exterior Stain Colour of the Year, reflecting a trend where 76% of Canadian homeowners plan to undertake exterior renovations in 2025 [1] - A significant 66% of homeowners prefer updating their home's exterior rather than selling, indicating a shift towards home improvement [1] Company Overview - Behr Paint Company, founded in 1947, is a leading manufacturer of paints and related products in North America, known for brands like BEHR®, KILZ®, and WHIZZ® [5] - The company emphasizes quality, innovation, and value in its offerings, catering to both DIYers and professional contractors [6] Product Launch and Features - The 2025 Exterior Stain Colour of the Year, Cedar, is described as a warm, earthy light golden-brown that enhances the natural beauty of wood [3] - Behr is also launching its second annual Curb Appeal Collection, which includes 45 curated exterior paint colors to simplify the selection process for homeowners [2] - The Curb Appeal Collection features four sub-palettes: Classic Haven, Modern Escape, Casual Oasis, and Artisan Retreat, each designed to cater to different design styles and preferences [5] Market Trends - The study indicates that 78% of homeowners are open to painting their home's exterior a different color, but 48% feel overwhelmed by the choices available [2] - The trend towards natural, earthy tones in home design is growing, with Cedar embodying this consumer preference [2][3]

Core Viewpoint - Masco Corporation's fourth-quarter 2024 earnings exceeded expectations while net sales fell short of consensus estimates, reflecting challenges in sales volume and pricing in certain segments [1][4][12]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were 89 cents, surpassing the Zacks Consensus Estimate of 88 cents, and increased from 83 cents in the prior year [4]. - Net sales totaled $1.83 billion, slightly missing the consensus mark of $1.84 billion and declining 3% year over year; however, excluding divestitures, net sales rose 1% in local currency [4][12]. - For the full year, net sales were reported at $7.83 billion, down 2% year over year, with North American sales declining 2% and international sales remaining flat [12]. Segment Analysis - Plumbing Products segment saw net sales decline 1% year over year to $1.19 billion, with North American sales down 2% and international sales up 2% in local currency [6]. - Decorative Architectural Products segment reported sales of $639 million, down 6% from the prior year, but increased 5% in local currency when excluding divestitures [8]. Margin and Cost Management - Adjusted operating margin improved by 40 basis points year over year to 16.8%, driven by cost savings initiatives and lower expenses, despite challenges from unfavorable volume mix and higher commodity costs [7]. - Adjusted gross margin contracted 30 basis points to 34.8%, while adjusted selling, general and administrative expenses as a percentage of net sales decreased by 170 basis points to 18.9% [10]. Shareholder Returns and Capital Deployment - The company returned $331 million to shareholders through dividends and share repurchases during the quarter [3]. - In 2024, Masco repurchased 10 million shares for approximately $757 million and announced a 7% increase in its quarterly dividend payment to 31 cents per share for Q1 2025 [15]. Future Guidance - For 2025, Masco expects adjusted EPS to range between $4.20 and $4.45, with net sales anticipated to be flat to up low-single digits when adjusted for divestitures and currency [16]. - The company projects demand in the global repair and remodel markets to be flat to down low single digits year over year [16].