The Sherwin-Williams Company ( SHW Quick Quote 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 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.
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.
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 Quick Quote DOW - Free Report) , Nucor Corporation ( NUE Quick Quote NUE - Free Report) and Impala Platinum Holdings Limited ( IMPUY Quick Quote 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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