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Sherwin-Williams (SHW) Raises Its Sales Outlook for Q2

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The Sherwin-Williams Company (SHW - Free Report) announced that it increased its net sales outlook for the second quarter, citing greater-than-anticipated demand in its architectural business in North America.

The company stated that it now projects consolidated net sales for the second quarter to decline by a mid-single-digit percentage, up from a year-over-year dip in the low to mid-teens percentage mentioned earlier.

Notably, the company provided forecast for each of its three business units in the revised outlook.

In the Americas Group unit, Sherwin-Williams stated that it quickly adapted to the coronavirus pandemic by implementing curbside pickup in stores, utilizing its fleet of more than 3,000 delivery vehicles, and leveraging its e-commerce platform. Notably, the company anticipates second-quarter net sales for the segment to decline by a high-single-digit percentage compared with the previous outlook of a decrease of low-double-digit to mid-teens percentage.

In the Consumer Brands Group, Sherwin-Williams stated that the unprecedented demand from retail partners remained healthy. Notably, the company anticipates net sales for the second quarter in the segment to be substantially above the high end of the previously mentioned increase by a high-single-digit to low-double-digit percentage.

In the Performance Coatings Group, Sherwin-Williams stated that its demand has been variable by end market and geography. Notably, the company anticipates second-quarter net sales for the segment to be in line with the earlier outlook of a decline by a high-teens percentage.

Sherwin-Williams is scheduled to report second-quarter results on Jul 28 and will provide guidance on third-quarter sales, and update its full-year sales and earnings per share guidance at that time.

Shares of the company have gained 25% in the past year compared with the industry’s 24.7% rise.

 

Sherwin-Williams, in April 2020, lowered its earnings per share guidance for 2020 to $16.46-$18.46 from $19.91-$20.71 mentioned earlier.

The SherwinWilliams Company Price and Consensus

 

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the basic materials space are AngloGold Ashanti Limited (AU - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) .

AngloGold has a projected earnings growth rate of 109.9% for the current year. The company’s shares have surged around 55% in a year. It currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Barrick has a projected earnings growth rate of 54.9% for the current year. The company’s shares have rallied around 57% in a year. It currently has a Zacks Rank #2.

Agnico Eagle has an expected earnings growth rate of 53.6% for 2020. The company’s shares have gained 17.3% in the past year. It presently carries a Zacks Rank #2.

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