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Sherwin-Williams (SHW) Beats Earnings & Sales Estimates in Q1
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The Sherwin-Williams Company (SHW - Free Report) logged earnings (as reported) of $1.51 per share in first-quarter 2021, up 31.3% from $1.15 in the year-ago quarter.
Barring one-time items, adjusted earnings in the reported quarter were $2.06 per share, which topped the Zacks Consensus Estimate of $1.65.
Sherwin-Williams posted revenues of $4,656 million, up 12.3% year over year. The figure also beat the Zacks Consensus Estimate of $4,536.6 million.
The SherwinWilliams Company Price, Consensus and EPS Surprise
The Americas Group segment registered net sales of $2.5 billion in the first quarter, up 8.6% year over year. The upside was mainly owing to higher residential repaint, new residential and DIY (do-it-yourself) paint sales as well as higher selling prices.
Net sales in the Consumer Brands Group segment increased 25% year over year to $778.1 million. The increase in sales was primarily driven by higher volume sales to most of the group consumers and a rise in selling price.
Net sales in the Performance Coatings Group rose 12.9% year over year to around $1.4 billion in the reported quarter. The upside was mainly driven by higher sales volumes in most end markets served and higher selling prices.
Financials and Shareholder Returns
At the end of the first quarter, Sherwin-Williams had cash and cash equivalents of $314.7 million, up 31.9% year over year. Long-term debt declined 5.1% year over year to $7,862.4 million.
The company repurchased 3.3 million shares of its common stock in the first quarter. It had remaining authorization to repurchase 55.35 million shares through open market purchases at the end of the quarter.
Outlook
The company expects consolidated net sales to increase mid-to-high teens in the second quarter. For 2021, it is expected to increase mid-to-high single digits. The company also expects adjusted earnings per share for 2021 to be between $8.80 and $9.07.
Price Performance
Shares of Sherwin-Williams have gained 58.9% in the past year compared with 55.6% rise of the industry.
Zacks Rank & Key Picks
Sherwin-Williams currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Dow has a projected earnings growth rate of roughly 221.7% for the current year. The company’s shares have surged 73.4% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 203.6% for the current year. The company’s shares have gained 99.1% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 266.8% in the past year. It currently flaunts a Zacks Rank #1.
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Sherwin-Williams (SHW) Beats Earnings & Sales Estimates in Q1
The Sherwin-Williams Company (SHW - Free Report) logged earnings (as reported) of $1.51 per share in first-quarter 2021, up 31.3% from $1.15 in the year-ago quarter.
Barring one-time items, adjusted earnings in the reported quarter were $2.06 per share, which topped the Zacks Consensus Estimate of $1.65.
Sherwin-Williams posted revenues of $4,656 million, up 12.3% year over year. The figure also beat the Zacks Consensus Estimate of $4,536.6 million.
The SherwinWilliams Company Price, Consensus and EPS Surprise
The SherwinWilliams Company price-consensus-eps-surprise-chart | The SherwinWilliams Company Quote
Segmental Review
The Americas Group segment registered net sales of $2.5 billion in the first quarter, up 8.6% year over year. The upside was mainly owing to higher residential repaint, new residential and DIY (do-it-yourself) paint sales as well as higher selling prices.
Net sales in the Consumer Brands Group segment increased 25% year over year to $778.1 million. The increase in sales was primarily driven by higher volume sales to most of the group consumers and a rise in selling price.
Net sales in the Performance Coatings Group rose 12.9% year over year to around $1.4 billion in the reported quarter. The upside was mainly driven by higher sales volumes in most end markets served and higher selling prices.
Financials and Shareholder Returns
At the end of the first quarter, Sherwin-Williams had cash and cash equivalents of $314.7 million, up 31.9% year over year. Long-term debt declined 5.1% year over year to $7,862.4 million.
The company repurchased 3.3 million shares of its common stock in the first quarter. It had remaining authorization to repurchase 55.35 million shares through open market purchases at the end of the quarter.
Outlook
The company expects consolidated net sales to increase mid-to-high teens in the second quarter. For 2021, it is expected to increase mid-to-high single digits. The company also expects adjusted earnings per share for 2021 to be between $8.80 and $9.07.
Price Performance
Shares of Sherwin-Williams have gained 58.9% in the past year compared with 55.6% rise of the industry.
Zacks Rank & Key Picks
Sherwin-Williams currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Dow has a projected earnings growth rate of roughly 221.7% for the current year. The company’s shares have surged 73.4% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 203.6% for the current year. The company’s shares have gained 99.1% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 266.8% in the past year. It currently flaunts a Zacks Rank #1.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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