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Sherwin-Williams (SHW) Q1 Earnings Beat Estimates, Sales Miss

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The Sherwin-Williams Company (SHW - Free Report) is a manufacturer, distributor and retailer of paint, coatings and related products.


Sherwin-Williams’ adjusted earnings were $3.57 per share for the first quarter. It beat the Zacks Consensus Estimate of $3.14.


Sherwin-Williams posted first-quarter revenues of $3,965 million, up 43.6% year over year. It missed the Zacks Consensus Estimate of $3,984 million. Sales were driven by the addition of Valspar sales, higher selling prices and increased paint sales volumes in the Americas Group unit.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Sherwin-Williams for the first quarter has been going up over the past month. The company has beaten the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average beat of around 0.8%.

Key Stats/Developments to Note

Sherwin-Williams projects mid-to-high single digit percentage increase in net sales year over year for second-quarter 2018. It also sees incremental sales from Valspar acquisition to be around $600 million for April and May in the quarter.

For full-year 2018, Sherwin-Williams projects mid-to-high single digit percentage increase in net sales from 2017. It also sees incremental sales from the Valspar buyout to be roughly $1.7 billion for the first five months of the year. At this level, the company expects earnings per share for the year to be in the range of $14.95 to $15.45 per share. The guidance includes a $3.40-$3.50 per share charge related to the Valspar acquisition.

Zacks Rank

Currently, Sherwin-Williams has a Zacks Rank #2 (Buy), but that could change following the company’s earnings report which was just released. Meanwhile, you can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Market Reaction

Sherwin-Williams’ shares were down 4.5% in the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Sherwin-Williams’ earnings report!

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