Shares of Masco Corporation (MAS) tumbled 7.57% in pre-market trading on Wednesday following the release of its third-quarter earnings report that fell short of analyst expectations and a reduction in its full-year guidance.
The home improvement products manufacturer reported adjusted earnings per share of $0.97 for the third quarter, missing the analyst consensus estimate of $1.03. This represents a 10.19% decrease from $1.08 per share in the same period last year. Masco's quarterly sales came in at $1.917 billion, falling short of the expected $1.941 billion and marking a 3.33% decline from the previous year's $1.983 billion.
Adding to investor concerns, Masco lowered its full-year 2025 adjusted earnings per share guidance to a range of $3.90 to $3.95, down from the previous forecast of $3.90 to $4.10. The company cited challenging near-term market conditions as a headwind to its business. The plumbing products segment, a major revenue contributor, saw its adjusted operating margin decline to 16.4% from 19.9% a year ago, while sales in the decorative architectural products segment fell by 12% in local currency. These factors, combined with the ongoing impact of tariffs and macroeconomic challenges, have contributed to the negative market reaction and the sharp pre-market decline in Masco's stock price.