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Sherwin-Williams (SHW) to Post Q1 Earnings: What's in Store?
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The Sherwin-Williams Company (SHW - Free Report) is scheduled to release first-quarter 2023 results before the opening bell on Apr 25.
The company beat Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once, the average surprise being 0.5%. It pulled off an earnings surprise of 2.7% in the last reported quarter.
Higher sales in the Americas Group resulting from strong volumes and higher pricing, as well as good cost control initiatives and inorganic growth strategies taken by the company, are expected to have supported SHW’s first-quarter performance. However, elevated input, labor and energy costs and a slowdown in the U.S. housing market are likely to have posed a headwind for the company.
Sherwin-Williams' shares were down 9.1% in the past year compared with the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $5,148 million, suggesting a rise of 3% from the year-ago reported number.
The Zacks Consensus Estimate for net sales of SHW’s Consumer Brands Group for the first quarter is $621 million, implying a decline of 11.2% year over year. The consensus estimate for its Performance Coatings Group is currently pegged at $1,666 million, which indicates a 0.73% rise. The same for SHW’s Americas Group is $2,862 million, which suggests an increase of 8.2% from the year-ago reported number.
Factors to Note
Sherwin-Williams is expected to have benefited from acquisitions, which are likely to have supported its top line in the first quarter. The company is likely to have benefited from strong sales in the Americas Group, which is expected to have gained from healthy volumes and a rise in selling prices. The company might have also gained from its cost control iniiatives, which are expected to boost its margins.
However, high raw material costs are expected to have unfavorably impacted the company’s first-quarter performance. A slowdown in U.S. housing markets is likely to have dented SHW’s architectural and industrial wood business in the first quarter. The weak economic environment in Europe and China also might have hurt the SHW’s performance in the first quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sherwin-Williams this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case.
Earnings Beat: Earnings ESP for Sherwin-Williams is -1.39%. This is because the Most Accurate Estimate is currently pegged at $1.81 while the Zacks Consensus Estimate stands at $1.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sherwin-Williams currently carries a Zacks Rank #3.
The Sherwin-Williams Company Price and EPS Surprise
Here are some companies in the construction space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for United Rental’s first-quarter earnings has been revised 2.4% upward in the past 60 days. The consensus estimate for URI’s earnings for the first quarter is currently pegged at $8.12.
Howmet Aerospace Inc. (HWM - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.88% and carries a Zacks Rank #3.
The consensus estimate for HWM’s earnings for the first quarter is currently pegged at 38 cents.
EMCOR Group, Inc. (EME - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +0.27% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for EME's earnings for the first quarter is pegged at $1.84.
Image: Bigstock
Sherwin-Williams (SHW) to Post Q1 Earnings: What's in Store?
The Sherwin-Williams Company (SHW - Free Report) is scheduled to release first-quarter 2023 results before the opening bell on Apr 25.
The company beat Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once, the average surprise being 0.5%. It pulled off an earnings surprise of 2.7% in the last reported quarter.
Higher sales in the Americas Group resulting from strong volumes and higher pricing, as well as good cost control initiatives and inorganic growth strategies taken by the company, are expected to have supported SHW’s first-quarter performance. However, elevated input, labor and energy costs and a slowdown in the U.S. housing market are likely to have posed a headwind for the company.
Sherwin-Williams' shares were down 9.1% in the past year compared with the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $5,148 million, suggesting a rise of 3% from the year-ago reported number.
The Zacks Consensus Estimate for net sales of SHW’s Consumer Brands Group for the first quarter is $621 million, implying a decline of 11.2% year over year. The consensus estimate for its Performance Coatings Group is currently pegged at $1,666 million, which indicates a 0.73% rise. The same for SHW’s Americas Group is $2,862 million, which suggests an increase of 8.2% from the year-ago reported number.
Factors to Note
Sherwin-Williams is expected to have benefited from acquisitions, which are likely to have supported its top line in the first quarter. The company is likely to have benefited from strong sales in the Americas Group, which is expected to have gained from healthy volumes and a rise in selling prices. The company might have also gained from its cost control iniiatives, which are expected to boost its margins.
However, high raw material costs are expected to have unfavorably impacted the company’s first-quarter performance. A slowdown in U.S. housing markets is likely to have dented SHW’s architectural and industrial wood business in the first quarter. The weak economic environment in Europe and China also might have hurt the SHW’s performance in the first quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sherwin-Williams this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case.
Earnings Beat: Earnings ESP for Sherwin-Williams is -1.39%. This is because the Most Accurate Estimate is currently pegged at $1.81 while the Zacks Consensus Estimate stands at $1.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sherwin-Williams currently carries a Zacks Rank #3.
The Sherwin-Williams Company Price and EPS Surprise
The Sherwin-Williams Company price-eps-surprise | The Sherwin-Williams Company Quote
Stocks That Warrant a Look
Here are some companies in the construction space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
United Rentals, Inc. (URI - Free Report) , scheduled to release earnings on Apr 26, has an Earnings ESP of +4.51% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for United Rental’s first-quarter earnings has been revised 2.4% upward in the past 60 days. The consensus estimate for URI’s earnings for the first quarter is currently pegged at $8.12.
Howmet Aerospace Inc. (HWM - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.88% and carries a Zacks Rank #3.
The consensus estimate for HWM’s earnings for the first quarter is currently pegged at 38 cents.
EMCOR Group, Inc. (EME - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +0.27% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for EME's earnings for the first quarter is pegged at $1.84.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.