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Sherwin-Williams (SHW) Increases Guidance for Q2 and FY21
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The Sherwin-Williams Company (SHW - Free Report) increased net sales guidance for the second quarter of 2021 and its net sales and net income per share outlook for full-year 2021.
The company expects second-quarter consolidated net sales guidance to be up a high-teens percentage compared with previous guidance of mid-to-high teens percentage.
It has also raised full-year 2021 consolidated net sales guidance to be up a high-single to low-double-digit percentage over full-year 2020 compared with the previous guidance of up mid-to-high single digit percentage.
Sherwin-Williams also increased outlook for full-year 2021 net income per share to between $8.01 and $8.31, including roughly 80 cents per share for acquisition-related amortization expenses and a loss of 34 cents per share on the Wattyl divestiture. The previous guidance was in the range of $7.66-$7.93.
The company stated that it outperformed expectations in the first quarter, as well as sales in The Americas Group and Performance Coatings Group segments have been stronger than expected in the second quarter. It witnessed strong demand in architectural and industrial end markets with sustained improvement in commercial and property management.
However, the company encountered persistent raw material cost inflation in the second quarter. It is implementing additional price increases across all its segments, including a 7% price increase in The Americas Group on August 1. It now anticipates full-year 2021 adjusted net income per share to increase 13.6% at the midpoint of the range compared with prior-year levels.
Sherwin-Williams is scheduled to release second-quarter 2021 results on July 27.
Shares of Sherwin-Williams have gained 45.1% in the past year compared with 40.3% rise of the industry.
Image Source: Zacks Investment Research
The company’s adjusted earnings in the first quarter were $2.06 per share, which topped the Zacks Consensus Estimate of $1.65. It also posted revenues of $4,656 million, up 12.3% year over year.
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 due to higher residential repaint, new residential and DIY (do-it-yourself) paint sales as well as higher selling prices.
Net sales in the first quarter 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.
Moreover, net sales in the Performance Coatings Group rose 12.9% year over year to around $1.4 billion in the quarter. The upside was mainly driven by higher sales volumes in most end markets served and higher selling prices.
Sherwin-Williams currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 289.8% for the current year. The company’s shares have surged 59.2% 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.
Olin has an expected earnings growth rate of around 473.3% for the current year. The company’s shares have gained 270.3% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 60.9% in the past year. It currently flaunts a Zacks Rank #2.
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Image: Bigstock
Sherwin-Williams (SHW) Increases Guidance for Q2 and FY21
The Sherwin-Williams Company (SHW - Free Report) increased net sales guidance for the second quarter of 2021 and its net sales and net income per share outlook for full-year 2021.
The company expects second-quarter consolidated net sales guidance to be up a high-teens percentage compared with previous guidance of mid-to-high teens percentage.
It has also raised full-year 2021 consolidated net sales guidance to be up a high-single to low-double-digit percentage over full-year 2020 compared with the previous guidance of up mid-to-high single digit percentage.
Sherwin-Williams also increased outlook for full-year 2021 net income per share to between $8.01 and $8.31, including roughly 80 cents per share for acquisition-related amortization expenses and a loss of 34 cents per share on the Wattyl divestiture. The previous guidance was in the range of $7.66-$7.93.
The company stated that it outperformed expectations in the first quarter, as well as sales in The Americas Group and Performance Coatings Group segments have been stronger than expected in the second quarter. It witnessed strong demand in architectural and industrial end markets with sustained improvement in commercial and property management.
However, the company encountered persistent raw material cost inflation in the second quarter. It is implementing additional price increases across all its segments, including a 7% price increase in The Americas Group on August 1. It now anticipates full-year 2021 adjusted net income per share to increase 13.6% at the midpoint of the range compared with prior-year levels.
Sherwin-Williams is scheduled to release second-quarter 2021 results on July 27.
Shares of Sherwin-Williams have gained 45.1% in the past year compared with 40.3% rise of the industry.
The company’s adjusted earnings in the first quarter were $2.06 per share, which topped the Zacks Consensus Estimate of $1.65. It also posted revenues of $4,656 million, up 12.3% year over year.
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 due to higher residential repaint, new residential and DIY (do-it-yourself) paint sales as well as higher selling prices.
Net sales in the first quarter 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.
Moreover, net sales in the Performance Coatings Group rose 12.9% year over year to around $1.4 billion in the quarter. The upside was mainly driven by higher sales volumes in most end markets served and higher selling prices.
The SherwinWilliams Company Price and Consensus
The SherwinWilliams Company price-consensus-chart | The SherwinWilliams Company Quote
Zacks Rank & Other Key Picks
Sherwin-Williams currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 289.8% for the current year. The company’s shares have surged 59.2% 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.
Olin has an expected earnings growth rate of around 473.3% for the current year. The company’s shares have gained 270.3% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 60.9% in the past year. It currently flaunts a Zacks Rank #2.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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