MASco Misses Q4 Sales Targets

Masco Corporation (NYSE:MAS), a home-building design and manufacturing company, reported lower-than-expected revenue in Q4 CY2024. Sales fell 2.9% year-over-year to $1.83 billion, missing analyst estimates by 0.5%.

Earnings Beat, Guidance Miss

Despite the sales miss, Masco's non-GAAP earnings per share (EPS) of $0.89 exceeded analysts' expectations by 1.9%. Adjusted EBITDA came in line at $328 million, with a margin of 17.9%.

However, the company provided guidance for fiscal year 2025 that missed analyst estimates by 1.8%, with adjusted EPS guidance of $4.33 at the midpoint.

Growth Challenges

Masco's revenue has grown at a sluggish 3.1% compounded annual rate over the past five years, which is below the sector average. The company's operating margin and EPS have also shown limited growth.

Profitability and Efficiency

Masco's operating margin improved by 2.7 percentage points year-over-year to 15.9%. This improvement is attributed to increased efficiency in expenses.

Stock Performance

The stock remained flat at $78.11 immediately following the results.

Analyst Outlook

Sell-side analysts expect Masco's revenue to remain flat over the next 12 months. They forecast a 7.4% growth in full-year EPS to $4.10.

Conclusion

Masco's Q4 results were mixed, with a sales miss but an earnings beat. The company's guidance suggests continued challenges in revenue growth. Investors should consider the overall valuation, business qualities, and earnings before making buying decisions.