As you might know, Masco Corporation (NYSE:MAS) recently reported its quarterly numbers. Statutory earnings per share fell badly short of expectations, coming in at US$0.77, some 30% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$2.0b. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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.

Following last week's earnings report, Masco's 21 analysts are forecasting 2025 revenues to be US$8.02b, approximately in line with the last 12 months. Per-share earnings are expected to swell 15% to US$4.44. In the lead-up to this report, the analysts had been modelling revenues of US$8.15b and earnings per share (EPS) of US$4.47 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$87.03, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Masco, with the most bullish analyst valuing it at US$96.00 and the most bearish at US$75.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Masco's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.4% growth on an annualised basis. This is compared to a historical growth rate of 4.4% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Masco.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Masco. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Masco analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Masco that you should be aware of.

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