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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 $1.41 per share in first-quarter 2022, down 6.6% from $1.51 in the year-ago quarter.
Barring one-time items, adjusted earnings in the reported quarter were $1.61 per share, which topped the Zacks Consensus Estimate of $1.54.
Sherwin-Williams posted revenues of $4,998.7 million, up 7.4% year over year. The figure also beat the Zacks Consensus Estimate of $4,877.7 million.
The SherwinWilliams Company Price, Consensus and EPS Surprise
The Americas Group segment registered net sales of $2.6 billion in the first quarter, up 5.6% year over year. The upside was mainly owing to sales increases in all professional contractor end markets.
Net sales in the Consumer Brands Group segment decreased 10.1% year over year to $699.4 million. The decrease in sales was led by lower sales outside North America and the Wattyl divestiture.
Net sales in the Performance Coatings Group rose 20.4% year over year to around $1.7 billion in the reported quarter. The upside was mainly driven by higher sales in all end markets served led by higher selling prices and sales volume growth in the company’s Packaging and Coil businesses.
Financials and Shareholder Returns
At the end of the first quarter, Sherwin-Williams had cash and cash equivalents of $401.1 million, up 27.5% year over year. Long-term debt increased 9.3% year over year to $8,592.3 million.
The company repurchased 1.45 million shares of its common stock in the first quarter. It had remaining authorization to repurchase 47.1 million shares through open market purchases at the end of the quarter.
Outlook
The company expects consolidated net sales to increase low-double digit to mid teens percentage year over year in the second quarter. For 2022, it is expected to increase high-single digit to low-double digit percentage. The company also expects adjusted earnings per share for 2022 to be between $9.25 and $9.65.
Price Performance
Shares of Sherwin-Williams have declined 8% in the past year compared with 8.6% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Sherwin-Williams currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. MOS has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 78.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 55.8% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 14% over a year.
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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 $1.41 per share in first-quarter 2022, down 6.6% from $1.51 in the year-ago quarter.
Barring one-time items, adjusted earnings in the reported quarter were $1.61 per share, which topped the Zacks Consensus Estimate of $1.54.
Sherwin-Williams posted revenues of $4,998.7 million, up 7.4% year over year. The figure also beat the Zacks Consensus Estimate of $4,877.7 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 $2.6 billion in the first quarter, up 5.6% year over year. The upside was mainly owing to sales increases in all professional contractor end markets.
Net sales in the Consumer Brands Group segment decreased 10.1% year over year to $699.4 million. The decrease in sales was led by lower sales outside North America and the Wattyl divestiture.
Net sales in the Performance Coatings Group rose 20.4% year over year to around $1.7 billion in the reported quarter. The upside was mainly driven by higher sales in all end markets served led by higher selling prices and sales volume growth in the company’s Packaging and Coil businesses.
Financials and Shareholder Returns
At the end of the first quarter, Sherwin-Williams had cash and cash equivalents of $401.1 million, up 27.5% year over year. Long-term debt increased 9.3% year over year to $8,592.3 million.
The company repurchased 1.45 million shares of its common stock in the first quarter. It had remaining authorization to repurchase 47.1 million shares through open market purchases at the end of the quarter.
Outlook
The company expects consolidated net sales to increase low-double digit to mid teens percentage year over year in the second quarter. For 2022, it is expected to increase high-single digit to low-double digit percentage. The company also expects adjusted earnings per share for 2022 to be between $9.25 and $9.65.
Price Performance
Shares of Sherwin-Williams have declined 8% in the past year compared with 8.6% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Sherwin-Williams currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. MOS has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 78.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 55.8% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 14% over a year.