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Home Construction Materials Stocks Q3 Highlights: Masco (NYSE:MAS)

MAS Cover Image

Let’s dig into the relative performance of Masco (NYSE: MAS) and its peers as we unravel the now-completed Q3 home construction materials earnings season.

Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies.

The 12 home construction materials stocks we track reported a slower Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Masco (NYSE: MAS)

Headquartered just outside of Detroit, MI, Masco (NYSE: MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.

Masco reported revenues of $1.92 billion, down 3.3% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

“During the third quarter, we continued to navigate through a dynamic geopolitical and macroeconomic environment. While the near-term market conditions remained a headwind to our business, our teams continued to focus on execution to grow share and drive long-term success,” said Masco President and CEO, Jon Nudi.

Masco Total Revenue

Unsurprisingly, the stock is down 2.7% since reporting and currently trades at $66.59.

Read our full report on Masco here, it’s free.

Best Q3: Quanex (NYSE: NX)

Starting in the seamless tube industry, Quanex (NYSE: NX) manufactures building products like window, door, kitchen, and bath cabinet components.

Quanex reported revenues of $489.8 million, flat year on year, outperforming analysts’ expectations by 4.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Quanex Total Revenue

The market seems happy with the results as the stock is up 26.1% since reporting. It currently trades at $19.02.

Is now the time to buy Quanex? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: American Woodmark (NASDAQ: AMWD)

Starting as a small millwork shop, American Woodmark (NASDAQ: AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.

American Woodmark reported revenues of $394.6 million, down 12.8% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 19.1% since the results and currently trades at $61.77.

Read our full analysis of American Woodmark’s results here.

Hayward (NYSE: HAYW)

Credited with introducing the first variable-speed pool pump, Hayward (NYSE: HAYW) makes residential and commercial pool equipment and accessories.

Hayward reported revenues of $244.3 million, up 7.4% year on year. This number surpassed analysts’ expectations by 5.5%. Overall, it was a stunning quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Hayward scored the biggest analyst estimates beat among its peers. The stock is up 5.1% since reporting and currently trades at $16.11.

Read our full, actionable report on Hayward here, it’s free.

JELD-WEN (NYSE: JELD)

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

JELD-WEN reported revenues of $809.5 million, down 13.4% year on year. This print came in 2% below analysts' expectations. It was a disappointing quarter as it also logged full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

JELD-WEN had the slowest revenue growth among its peers. The stock is down 38.9% since reporting and currently trades at $2.57.

Read our full, actionable report on JELD-WEN here, it’s free.


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