Will Masco (MAS) Pull Off A Surprise This Earnings Season?
Zacks Investment Research | Jul 19, 2016 05:19AM ET
Masco Corporation (NYSE:MAS) is set to report second-quarter 2016 results on Jul 26, before the market opens.
Last quarter, Masco had posted a positive surprise of 28.0%. In fact, the earnings history of this home improvement and building products company is rather impressive. Masco surpassed estimates in the past four quarters, resulting in an average positive surprise of 16.09%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Masco has been witnessing strong demand for its leading products since the past few quarters, as both the repair and remodeling industry as well as the new home construction industry are improving. This trend is expected to continue in the soon-to-be reported quarter.
Masco’s earnings, revenues and margin increased year over year in 2015 and the first quarter 2016. We expect the strong trends in earnings, revenues and margins to continue in the to-be-reported quarter as well.
About 21% of Masco’s sales are generated outside U.S, subjecting the company to the impact of currency translation across the globe. Though the U.S. dollar is getting weaker, the negative impact of unfavorable currency translations is still significant. Masco’s international sales may be dampened in the soon-to-be reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Masco is likely to beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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