Masco misses quarterly revenue targets

Masco Corp. missed Wall Street revenue expectations for its third quarter, reporting US$1.98 billion in net sales, slightly below the US$2 billion forecast. The home improvement giant, known for its plumbing and decorative products, faced weakened demand as high inflation continues to impact consumer spending on nonessential items.

Masco’s CEO Keith Allman noted the firm expects demand challenges to persist through year’s end. Shares of the Michigan-based company, which has seen a 22% increase this year, fell about 2% in premarket trading to US$79.95.

Despite sales declines in its decorative products, which slipped by 3%, Masco’s plumbing division rose by 2%, bolstered by price adjustments addressing rising labor costs. The firm also reported a drop in gross margins, attributed to supply chain costs and increased competition. Adjusted earnings per share remained in line with analyst estimates at US$1.08.