Analyst Note| Brian Bernard, CFA, CPA |
Masco's third-quarter revenue increased 11% year over year to $2.2 billion, as the firm continues to benefit from elevated repair and remodel spending. The plumbing segment (60% of third-quarter revenue) reported a 16% increase in sales compared with the prior-year quarter, driven by robust demand across both North American and international markets. The decorative architectural segment's 4% revenue growth exceeded our expectations. We expected a slight year-over-year decline due to moderating do-it-yourself paint demand against a tough prior-year sales comparison (third-quarter 2020 sales increased over 25%). And while DIY paint sales did decline by a mid-single-digit percentage, professional paint sales surged 45% year over year. We believe Masco's professional paint strategy is gaining traction in a channel that is seeing resurging demand.