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What's in Store for Sherwin-Williams Stock in Q3 Earnings?
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The Sherwin-Williams Company (SHW - Free Report) is scheduled to release third-quarter 2024 results before the opening bell on Oct. 22.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once, with the average surprise being 4.5%.
Sherwin-Williams' shares have gained 62.7% in the past year compared with the industry’s rise of 7.3%.
Image Source: Zacks Investment Research
What Do SHW’s Estimates Say?
The Zacks Consensus Estimate for sales for SHW for the to-be-reported quarter is currently pegged at $6,228.6 million, suggesting a rise of around 1.8% from the year-ago reported number.
The Zacks Consensus Estimate for net sales for SHW’s Consumer Brands Group for the third quarter is $770.8 million, implying a decline of 9.8% year over year.
The Zacks Consensus Estimate for Performance Coatings Group is $1,733.1 million, which indicates a 0.5% rise. The consensus estimate for Paint Stores Group is $3,743.2 million, which suggests an increase of 5.8% from the year-ago reported number.
Factors at Play for SHW Stock
Sherwin-Williams is expected to have gained from its efforts to develop its retail business in response to strong domestic demand. The company is committed to capturing a larger share of its end markets, as indicated by the growing number of retail locations.
Sherwin-Williams' cost-cutting initiatives, supply chain efficiency and enhanced productivity are expected to have boosted profits in the third quarter. Efforts to enhance selling prices across all divisions, as well as acquisition gains, are likely to have enhanced the company's profitability. Furthermore, its consistent cash generation is likely to have resulted in substantial returns to shareholders.
The company is taking restructuring measures in its consumer brands, performance coatings and corporate operations. SHW's cost-cutting measures are projected to result in higher margins in the September quarter. It is also expected to have gained from moderated raw material costs.
However, demand weakness is expected to have continued in new residential construction and the Consumer Brands Group's DIY business in North America. Sherwin-Williams is also likely to have faced challenges in certain of its Performance Coatings Group operations. Sales in packaging and general industrial are expected to have remained under pressure due to low demand.
What Our Model Unveils for SHW
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 here.
Earnings ESP: Earnings ESP for SHW is -1.86%. This is because the Most Accurate Estimate stands at $3.50 while the Zacks Consensus Estimate is pegged at $3.56. 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 Zacks Rank #3.
The Sherwin-Williams Company Price and EPS Surprise
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Royal Gold Inc. (RGLD - Free Report) , slated to release its earnings on Nov. 6, has an Earnings ESP of +7.48% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The consensus estimate for RGLD’s third-quarter earnings per share is currently pegged at $1.25.
Agnico Eagle Mines Limited (AEM - Free Report) , slated to release earnings on Oct. 30, has an Earnings ESP of +4.69% and carries a Zacks Rank #1 at present. The consensus mark for AEM’s third-quarter earnings is currently pegged at 96 cents.
Avient Corporation (AVNT - Free Report) , slated to release earnings on Oct. 31, has an Earnings ESP of +0.64% and carries a Zacks Rank #2 at present. The consensus mark for AVNT’s third-quarter earnings is currently pegged at 63 cents.
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What's in Store for Sherwin-Williams Stock in Q3 Earnings?
The Sherwin-Williams Company (SHW - Free Report) is scheduled to release third-quarter 2024 results before the opening bell on Oct. 22.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once, with the average surprise being 4.5%.
Sherwin-Williams' shares have gained 62.7% in the past year compared with the industry’s rise of 7.3%.
Image Source: Zacks Investment Research
What Do SHW’s Estimates Say?
The Zacks Consensus Estimate for sales for SHW for the to-be-reported quarter is currently pegged at $6,228.6 million, suggesting a rise of around 1.8% from the year-ago reported number.
The Zacks Consensus Estimate for net sales for SHW’s Consumer Brands Group for the third quarter is $770.8 million, implying a decline of 9.8% year over year.
The Zacks Consensus Estimate for Performance Coatings Group is $1,733.1 million, which indicates a 0.5% rise. The consensus estimate for Paint Stores Group is $3,743.2 million, which suggests an increase of 5.8% from the year-ago reported number.
Factors at Play for SHW Stock
Sherwin-Williams is expected to have gained from its efforts to develop its retail business in response to strong domestic demand. The company is committed to capturing a larger share of its end markets, as indicated by the growing number of retail locations.
Sherwin-Williams' cost-cutting initiatives, supply chain efficiency and enhanced productivity are expected to have boosted profits in the third quarter. Efforts to enhance selling prices across all divisions, as well as acquisition gains, are likely to have enhanced the company's profitability. Furthermore, its consistent cash generation is likely to have resulted in substantial returns to shareholders.
The company is taking restructuring measures in its consumer brands, performance coatings and corporate operations. SHW's cost-cutting measures are projected to result in higher margins in the September quarter. It is also expected to have gained from moderated raw material costs.
However, demand weakness is expected to have continued in new residential construction and the Consumer Brands Group's DIY business in North America. Sherwin-Williams is also likely to have faced challenges in certain of its Performance Coatings Group operations. Sales in packaging and general industrial are expected to have remained under pressure due to low demand.
What Our Model Unveils for SHW
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 here.
Earnings ESP: Earnings ESP for SHW is -1.86%. This is because the Most Accurate Estimate stands at $3.50 while the Zacks Consensus Estimate is pegged at $3.56. 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 Zacks Rank #3.
The Sherwin-Williams Company Price and EPS Surprise
The Sherwin-Williams Company price-eps-surprise | The Sherwin-Williams Company Quote
Basic Materials Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Royal Gold Inc. (RGLD - Free Report) , slated to release its earnings on Nov. 6, has an Earnings ESP of +7.48% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The consensus estimate for RGLD’s third-quarter earnings per share is currently pegged at $1.25.
Agnico Eagle Mines Limited (AEM - Free Report) , slated to release earnings on Oct. 30, has an Earnings ESP of +4.69% and carries a Zacks Rank #1 at present. The consensus mark for AEM’s third-quarter earnings is currently pegged at 96 cents.
Avient Corporation (AVNT - Free Report) , slated to release earnings on Oct. 31, has an Earnings ESP of +0.64% and carries a Zacks Rank #2 at present. The consensus mark for AVNT’s third-quarter earnings is currently pegged at 63 cents.