Zacks: Brokerages Anticipate Masco Corp (NYSE:MAS) Will Post Earnings of $0.71 Per Share

Brokerages predict that Masco Corp (NYSE:MAS) will post $0.71 earnings per share for the current quarter, Zacks Investment Research reports. Seven analysts have made estimates for Masco’s earnings. The highest EPS estimate is $0.74 and the lowest is $0.68. Masco reported earnings of $0.65 per share during the same quarter last year, which suggests a positive year-over-year growth rate of 9.2%. The business is expected to report its next earnings results before the market opens on Wednesday, October 30th.

According to Zacks, analysts expect that Masco will report full-year earnings of $2.66 per share for the current financial year, with EPS estimates ranging from $2.64 to $2.67. For the next fiscal year, analysts anticipate that the business will report earnings of $2.88 per share, with EPS estimates ranging from $2.82 to $2.95. Zacks Investment Research’s earnings per share calculations are an average based on a survey of research analysts that that provide coverage for Masco.

Masco (NYSE:MAS) last posted its quarterly earnings data on Thursday, July 25th. The construction company reported $0.88 EPS for the quarter, beating the Zacks’ consensus estimate of $0.81 by $0.07. Masco had a net margin of 8.77% and a return on equity of 792.80%. The company had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter in the prior year, the company posted $0.75 EPS. The company’s quarterly revenue was down 1.0% compared to the same quarter last year.

MAS has been the subject of a number of research analyst reports. Royal Bank of Canada set a $45.00 target price on shares of Masco and gave the stock a “buy” rating in a research report on Friday, July 26th. SunTrust Banks dropped their target price on shares of Masco from $50.00 to $48.00 and set a “buy” rating for the company in a research report on Thursday, September 19th. Bank of America dropped their target price on shares of Masco from $56.00 to $54.00 and set a “buy” rating for the company in a research report on Wednesday, September 18th. Zacks Investment Research raised shares of Masco from a “sell” rating to a “hold” rating and set a $44.00 target price for the company in a research report on Friday. Finally, Barclays increased their target price on shares of Masco from $45.00 to $47.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 2nd. Seven equities research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $45.40.

MAS traded up $0.97 on Friday, reaching $42.82. 2,839,420 shares of the company’s stock were exchanged, compared to its average volume of 3,225,272. The company’s 50 day moving average is $41.30 and its 200-day moving average is $39.45. The company has a market cap of $12.39 billion, a price-to-earnings ratio of 17.13, a PEG ratio of 1.92 and a beta of 1.42. Masco has a twelve month low of $27.03 and a twelve month high of $43.59. The company has a debt-to-equity ratio of 39.03, a quick ratio of 0.96 and a current ratio of 1.46.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 12th. Shareholders of record on Friday, October 11th will be issued a $0.135 dividend. This represents a $0.54 dividend on an annualized basis and a yield of 1.26%. The ex-dividend date of this dividend is Thursday, October 10th. This is a boost from Masco’s previous quarterly dividend of $0.12. Masco’s dividend payout ratio is currently 19.20%.

Masco declared that its board has authorized a share buyback program on Tuesday, September 17th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the construction company to reacquire up to 16.2% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

In other Masco news, CFO John G. Sznewajs sold 85,473 shares of the company’s stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $40.88, for a total value of $3,494,136.24. Following the completion of the transaction, the chief financial officer now owns 318,403 shares in the company, valued at approximately $13,016,314.64. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.17% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MAS. AQR Capital Management LLC boosted its holdings in Masco by 4,714.2% in the 2nd quarter. AQR Capital Management LLC now owns 4,520,776 shares of the construction company’s stock worth $177,395,000 after acquiring an additional 4,426,871 shares during the period. Nuveen Asset Management LLC boosted its holdings in Masco by 3,506.0% in the 2nd quarter. Nuveen Asset Management LLC now owns 4,530,529 shares of the construction company’s stock worth $177,778,000 after acquiring an additional 4,404,891 shares during the period. Invesco Ltd. boosted its holdings in Masco by 119.2% in the 2nd quarter. Invesco Ltd. now owns 4,858,957 shares of the construction company’s stock worth $190,665,000 after acquiring an additional 2,641,856 shares during the period. FMR LLC boosted its holdings in Masco by 91.7% in the 1st quarter. FMR LLC now owns 3,095,234 shares of the construction company’s stock worth $121,673,000 after acquiring an additional 1,480,245 shares during the period. Finally, UBS Asset Management Americas Inc. boosted its stake in shares of Masco by 23.4% during the 2nd quarter. UBS Asset Management Americas Inc. now owns 4,484,080 shares of the construction company’s stock valued at $175,955,000 after buying an additional 851,759 shares during the last quarter. Hedge funds and other institutional investors own 90.10% of the company’s stock.

About Masco

Masco Corporation designs, manufactures, and distributes home improvement and building products worldwide. The company's Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, toilets, acrylic tubs, shower trays, spas, exercise pools, fitness systems, and other non-decorative plumbing products; brass, copper, and composite plumbing system components; and thermoplastic extrusions, extruded plastic profiles, and specialized fabrications.

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