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Masco Corporation (NYSE:MAS) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Masco reported in line with analyst predictions, delivering revenues of US$7.8b and statutory earnings per share of US$3.76, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Masco after the latest results.
Check out our latest analysis for Masco
Following last week's earnings report, Masco's 20 analysts are forecasting 2025 revenues to be US$7.73b, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 11% to US$4.32. In the lead-up to this report, the analysts had been modelling revenues of US$7.91b and earnings per share (EPS) of US$4.40 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
The consensus has reconfirmed its price target of US$84.66, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Masco's market value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Masco analyst has a price target of US$96.00 per share, while the most pessimistic values it at US$74.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.3% by the end of 2025. This indicates a significant reduction from annual growth of 3.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.4% per year. It's pretty clear that Masco's revenues are expected to perform substantially worse than the wider industry.