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Sherwin-Williams (SHW) Q1 Earnings & Sales Beat Estimates

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The Sherwin-Williams Company (SHW - Free Report) makes and distributes paints, coatings and related products, primarily in the North and South America. The company also has operations in the Caribbean region, Europe and Asia. Its well-known brands include Dutch Boy, Minwax and Krylon.

Sherwin-Williams’ Latin American operation remains exposed to currency headwinds and soft end-market demand. Sherwin-Williams also remains exposed to volatility in raw material costs. Nevertheless, Sherwin-Williams follow a strategy of growth through acquisitions and internal initiatives such as efficient working capital management and innovation.

Let’s have a quick look at this paint company’s first-quarter 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Sherwin-Williams for the first quarter has slightly decreased over the past month. The company has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters and missed in 2, with an average beat of around 2.82%.

Earnings

Sherwin-Williams’ adjusted earnings for the quarter came in at $2.27 per share. Earnings surpassed the Zacks Consensus Estimate of $2.07.

Sherwin-Williams Company (The) Price and EPS Surprise

 

Revenues

Sherwin-Williams reported revenues of $2,761.4 million, up around 7.3% year over year. That also surpassed the Zacks Consensus Estimate of $2,740 million.

Key Developments to Note

Sherwin-Williams projects mid to high single digit percentage increase in net sales, year over year for second-quarter 2017. The company expects earnings per share in the second quarter to be in the range of $4.15 to $4.35 per share, compared to $3.99 earned in the second quarter of 2016. Second-quarter earnings per share includes costs related to the planned acquisition of Valspar of around 25 cents per share

For full-year 2017, Sherwin-Williams projects mid-single digit percentage increase in net sales from 2016. The company now expects earnings per share in the year to be in the range of $13.65 to $13.85 per share, compared to $11.99 earned in 2016. The year’s earnings per share include costs related to the planned acquisition of Valspar of 40 cents per share.

Zacks Rank

Currently, Sherwin-Williams has a Zacks Rank #2 (Buy).

Market Reaction

Sherwin-Williams’ shares remained inactive in the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Sherwin-Williams’ earnings report!

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