We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Sherwin-Williams (SHW) Down 0.1% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Sherwin-Williams (SHW - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sherwin-Williams due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sherwin-Williams’ Q1 Earnings and Revenues Beat Estimates
Sherwin-Williams recorded first-quarter 2023 earnings of $1.84 per share, reflecting a rise of 30.5% from the year-ago quarter's $1.41.
The company posted adjusted earnings of $2.04 per share, up 26.7% from the year-ago quarter figure of $1.61. It surpassed the Zacks Consensus Estimate of $1.84.
The company’s net sales in the first quarter were $5,442.4 million, which surpassed the Zacks Consensus Estimate of $5,147.6 million. Net sales increased 8.9% from $4,998.7 million reported in the prior-year quarter. The upside was driven by higher selling prices in all segments and increased architectural sales volumes in the Paint Stores Group segment, partly mitigated by lower sales volumes in the company’s Consumer Brands Group and Performance Coatings Group units.
Segment Highlights
Paint Stores Group: Net sales from this segment were $2,859.1 million in the first quarter, up 14.8% from the year-ago quarter. The increase in sales was primarily due to higher selling prices and a rise in sales volume in all end markets. Profit increased as higher prices and a rise in paint sales volumes were partly offset by continued investments in long-term growth strategies and increased employee-related costs in the quarter.
Consumer Brands Group: Net sales from this segment were $872.7 million in the first quarter, up 2.4% from the year-ago quarter. The increase in sales is primarily due to selling price rise and strong growth within Latin America, partly offset by reduced sales volumes in all other regions.
Performance Coatings Group: Net sales from this segment were $1,709.8 million in the first quarter, up 3.4% from the year-ago quarter. The upside was mainly supported by higher selling prices in all end markets and incremental sales from acquisitions but was partly offset by lower sales volume in Asia and Europe. Higher selling prices offset by increased costs related to employees led to a rise in segment profits.
Financials
At the end of the first quarter, Sherwin-Williams had cash and cash equivalents of $151.4 million, down around 62% year over year. Long-term debt increased 11.6% to $9,593 million.
Sherwin-Williams generated $88.2 million in net operating cash during the quarter.
Outlook
The company expects consolidated net sales growth to be up or down a low-single-digit percentage year over year in second-quarter 2023. For full-year 2023, it envisions consolidated net sales to be down a mid-single-digit percentage to flat year over year.
Sherwin-Williams also sees earnings in the range of $6.79-$7.59 per share for full-year 2023. Adjusted earnings have been forecast in the range of $7.95-$8.65 per share for the year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 5.66% due to these changes.
VGM Scores
Currently, Sherwin-Williams has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Sherwin-Williams (SHW) Down 0.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Sherwin-Williams (SHW - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sherwin-Williams due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sherwin-Williams’ Q1 Earnings and Revenues Beat Estimates
Sherwin-Williams recorded first-quarter 2023 earnings of $1.84 per share, reflecting a rise of 30.5% from the year-ago quarter's $1.41.
The company posted adjusted earnings of $2.04 per share, up 26.7% from the year-ago quarter figure of $1.61. It surpassed the Zacks Consensus Estimate of $1.84.
The company’s net sales in the first quarter were $5,442.4 million, which surpassed the Zacks Consensus Estimate of $5,147.6 million. Net sales increased 8.9% from $4,998.7 million reported in the prior-year quarter. The upside was driven by higher selling prices in all segments and increased architectural sales volumes in the Paint Stores Group segment, partly mitigated by lower sales volumes in the company’s Consumer Brands Group and Performance Coatings Group units.
Segment Highlights
Paint Stores Group: Net sales from this segment were $2,859.1 million in the first quarter, up 14.8% from the year-ago quarter. The increase in sales was primarily due to higher selling prices and a rise in sales volume in all end markets. Profit increased as higher prices and a rise in paint sales volumes were partly offset by continued investments in long-term growth strategies and increased employee-related costs in the quarter.
Consumer Brands Group: Net sales from this segment were $872.7 million in the first quarter, up 2.4% from the year-ago quarter. The increase in sales is primarily due to selling price rise and strong growth within Latin America, partly offset by reduced sales volumes in all other regions.
Performance Coatings Group: Net sales from this segment were $1,709.8 million in the first quarter, up 3.4% from the year-ago quarter. The upside was mainly supported by higher selling prices in all end markets and incremental sales from acquisitions but was partly offset by lower sales volume in Asia and Europe. Higher selling prices offset by increased costs related to employees led to a rise in segment profits.
Financials
At the end of the first quarter, Sherwin-Williams had cash and cash equivalents of $151.4 million, down around 62% year over year. Long-term debt increased 11.6% to $9,593 million.
Sherwin-Williams generated $88.2 million in net operating cash during the quarter.
Outlook
The company expects consolidated net sales growth to be up or down a low-single-digit percentage year over year in second-quarter 2023. For full-year 2023, it envisions consolidated net sales to be down a mid-single-digit percentage to flat year over year.
Sherwin-Williams also sees earnings in the range of $6.79-$7.59 per share for full-year 2023. Adjusted earnings have been forecast in the range of $7.95-$8.65 per share for the year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 5.66% due to these changes.
VGM Scores
Currently, Sherwin-Williams has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.