Masco to Report Q2 Earnings: Here's What Investors Must Know

Masco Corporation MAS is scheduled to report its second-quarter 2025 results on July 31, before the opening bell.In the last reported quarter, the company’s adjusted earnings and net sales missed the Zacks Consensus Estimate by 5.4% and 1.9%, respectively. Year over year, the metrics declined 6.5% and 6%, respectivelyMasco’s earnings topped the consensus mark in two of the last four quarters, met on one occasion and missed on the remaining occasion, the negative average surprise being 0.2%.MAS’ Estimate Revision TrendThe Zacks Consensus Estimate for adjusted earnings per share (EPS) has trended upward to $1.08 from $1.07 over the past 30 days. But the estimated figure indicates a 10% decline from the year-ago EPS of $1.20.Masco Corporation Price and EPS Surprise Masco Corporation price-eps-surprise | Masco Corporation QuoteThe consensus estimate for net sales is pegged at $2 billion, which indicates a 4.1% decline from the prior-year quarter’s figure of $2.09 billion.Factors Likely to Define Masco’s Q2 ResultsSales TrendsIn the to-be-reported quarter, Masco’s top line is expected to have declined year over year because of reduced contributions from its Decorative Architectural Products segment (which accounted for 34.3% of total net sales in the first quarter of 2025) due to lower sales volume and adverse impacts from the divestiture of its Kichler business. Notable decreases in DIY paint sales and PRO paint sales impacted the sales volume under this segment.However, sales improvement in the Plumbing Products segment (which accounted for 65.8% of total net sales in the first quarter of 2025) is likely to have supported the top line from declining further amid macro uncertainties. This segment is expected to have benefited from higher net selling prices, partially offset by an unfavorable sales mix.Segment-wise, our model expects the Plumbing Products segment’s net sales to inch up 1.3% year over year to $1.27 billion. The expectations for the Decorative Architectural Products segment’s net sales indicate a 12% decline year over year to $737.4 million.Geographically, we expect net sales in North America (which accounted for 78.4% of first-quarter 2025 total net sales) to decline 5.7% year over year to $1.6 billion. Net sales in International (which accounted for 21.6% of first-quarter 2025 total net sales) are anticipated to increase year over year by 2.5% to $406.9 million.MarginsThe company’s bottom line in the second quarter of 2025 is likely to have tumbled year over year due to the higher cost structure and adverse impact from tariffs. Masco expects that incremental China tariffs, alongside incremental annual expenses from tariffs on steel and aluminum, are likely to elevate its cost structure and pressure margins. Although it is taking steps to mitigate these impacts as much as possible, the external pressures keep adding up.Besides, higher commodity costs, increased marketing costs, unfavorable sales mix from its Plumbing Products segment and lower sales volume in its Decorative Architectural Products segment are likely to have added to the decline in its bottom line during the quarter to be reported.Segment-wise, we expect the adjusted operating margin for Plumbing Products and Decorative Architectural Products to decline year over year by 150 basis points (bps) to 18.4% and 300 bps to 17.8%, respectively.What Our Model Unveils for MASOur proven model conclusively predicts 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.Earnings ESP: MAS has an Earnings ESP of +2.61%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, the company carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks With the Favorable CombinationHere are some other stocks from the Zacks Construction sector, which per our model, have the right combination of elements to deliver an earnings beat this time around.Primoris Services Corporation PRIM has an Earnings ESP of +5.33% and a Zacks Rank of 1.Primoris Services’ earnings beat estimates in each of the last four quarters, the average surprise being 44.8%. Primoris Services’ earnings for the second quarter of 2025 are expected to increase 1.9%.MasTec, Inc. MTZ currently has an Earnings ESP of +0.09% and a Zacks Rank of 1.MasTec’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26%. MasTec’s earnings for the second quarter of 2025 are expected to grow 46.9%.Quanta Services, Inc. PWR currently has an Earnings ESP of +0.65% and a Zacks Rank of 3.Quanta’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 4.8%. Quanta’s earnings for the second quarter of 2025 are expected to increase 27.9%.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanta Services, Inc. (PWR): Free Stock Analysis Report Masco Corporation (MAS): Free Stock Analysis Report Primoris Services Corporation (PRIM): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks