Core Insights - Sherwin-Williams reported strong fourth quarter results with consolidated net sales growing by 0.9% year-over-year to $5.30 billion, driven primarily by the Paint Stores Group [1][2] - The company achieved a record full-year net sales of $23.10 billion, with a gross margin expansion of 180 basis points to 48.5% [1][7] - Adjusted diluted earnings per share increased by 15.5% to $2.09 in the fourth quarter and by 9.5% to $11.33 for the full year [1][7] Financial Performance - Fourth quarter net sales were $5,297.2 million, up from $5,252.2 million, with a net income per diluted share of $1.90, a 36.7% increase from $1.39 [2][24] - Income before income taxes rose by 29.9% to $615.6 million, reflecting higher net sales and lower provisions for environmental matters [2][3] - For the full year, net income increased to $2,681.4 million, with diluted net income per share rising to $10.55 from $9.25 [24] Segment Performance - The Paint Stores Group saw net sales increase by 3.4% to $3,044.9 million, with segment profit rising by 6.9% to $606.4 million [5][6] - The Consumer Brands Group experienced a decline in net sales by 4.3% to $662.2 million, but adjusted segment profit increased by 9.8% to $82.0 million [6][9] - The Performance Coatings Group's net sales decreased by 1.6% to $1,589.0 million, while segment profit increased by 3.9% to $229.0 million [11][12] Cash Flow and Shareholder Returns - The company generated $3.15 billion in net operating cash, returning $2.46 billion to shareholders through dividends and share repurchases [14] - The company repurchased 5.2 million shares during the year and had authorization to purchase an additional 34.4 million shares [14] 2025 Guidance - For 2025, Sherwin-Williams expects consolidated net sales to increase by a low-single digit percentage, with diluted net income per share guidance in the range of $10.70 to $11.10 [15][16] - The company anticipates continued demand softness in several end markets but sees significant above-market growth opportunities [15][16]

Core Viewpoint - Sherwin-Williams is set to release its fourth-quarter 2024 results on January 30, with mixed expectations regarding earnings performance and sales growth [1][2]. Sales Estimates - The Zacks Consensus Estimate for total sales in the upcoming quarter is $5,316 million, reflecting a year-over-year increase of approximately 1.2% [2]. - The Consumer Brands Group is expected to report net sales of $644.6 million, indicating a decline of 6.9% year over year [3]. - The Performance Coatings Group's sales estimate stands at $1,616.4 million, suggesting a slight increase of 0.1% [3]. - The Paint Stores Group is projected to achieve sales of $3,048 million, which represents a 3.5% increase from the previous year [3]. Factors Influencing Performance - The company is implementing aggressive cost-cutting measures, optimizing its supply chain, and focusing on productivity improvements, which are anticipated to support margins in the fourth quarter [4]. - Efforts to enhance selling prices and benefits from acquisitions are likely to contribute positively to profitability [4]. - Weakness in the DIY market is expected to negatively impact revenues for the Consumer Brands Group, particularly due to inflation and low existing house sales in North America [5]. - Challenges in the Performance Coatings Group, especially in the heavy equipment and transportation segments, are expected to pressure revenues [6]. - Recent hurricanes in the Southeast United States may have disrupted operations and affected fourth-quarter performance [7]. Earnings Prediction - The Earnings ESP for Sherwin-Williams is -2.43%, indicating a lower likelihood of an earnings beat, as the Most Accurate Estimate is $2.02 compared to the Zacks Consensus Estimate of $2.07 [9]. - The company currently holds a Zacks Rank of 4 (Sell), suggesting a less favorable outlook for earnings performance [10].

Core Viewpoint - Sherwin-Williams reported mixed financial results for Q3 2024, with earnings per share increasing but revenues falling short of estimates, leading to a downward trend in estimates for the stock. Financial Performance - Q3 2024 earnings were $3.18 per share, a 7.8% increase from $2.95 in the same quarter last year, but adjusted earnings of $3.37 missed the Zacks Consensus Estimate of $3.56 [2] - Revenues for the quarter were approximately $6.16 billion, up 0.7% year over year, but below the Zacks Consensus Estimate of $6.23 billion [3] Segment Analysis - The Paint Stores Group reported net sales of $3.65 billion, a 3.2% year-over-year increase, but missed the Zacks Consensus Estimate of $3.74 billion [4] - The Consumer Brands Group saw a 7.5% decline in net sales to $790.5 million, exceeding the Zacks Consensus Estimate of $770.8 million, attributed to weaker DIY demand and foreign currency translation impacts [5] - The Performance Coatings Group's net sales decreased by roughly 0.2% year over year to $1.72 billion, missing the Zacks Consensus Estimate of $1.73 billion [6] Cash Flow and Shareholder Returns - For the first nine months of 2024, the company generated $2.22 billion in net operating cash and returned $1.97 billion to shareholders through dividends and share repurchases [7] Future Outlook - The company anticipates flat to low single-digit percentage growth in consolidated net sales for Q4 2024 compared to Q4 2023, with full-year earnings per share expected to range from $10.3 to $10.6 [8] - Full-year 2024 adjusted earnings per share are forecasted to be between $11.10 and $11.40 [8] Estimate Trends - Recent estimates for the stock have trended downward, indicating a shift in expectations [9][11] VGM Scores - Sherwin-Williams holds a Growth Score of B but has a low Momentum Score of D and a Value Score of D, placing it in the bottom 40% for the value investment strategy, resulting in an aggregate VGM Score of C [10]

Leadership Transition - John G. Morikis will retire as Executive Chairman effective December 31, 2024, after a 40-year career with Sherwin-Williams [1] - Heidi G. Petz has been elected to assume the role of Chair of the Board effective January 1, 2025, while she continues as President and CEO [1][2] - The leadership transition is described as a defined and thoughtful process, with the Board believing that having Heidi serve as both CEO and Chair provides unified leadership [3] Company Performance and Future Outlook - Ms. Petz expressed gratitude for Mr. Morikis's leadership, noting that his dedication resulted in strong and sustained performance for the company [2] - The company is positioned well for future growth, building on the foundation laid by Mr. Morikis [4] Company Overview - Sherwin-Williams, founded in 1866, is a global leader in manufacturing, developing, distributing, and selling paint, coatings, and related products [4] - The company operates over 5,000 stores and offers products under well-known brands such as Sherwin-Williams®, Valspar®, and Krylon® [4]

Sherwin-Williams is joining the Dow, but that's not why investors should buy the stock.The stock of coatings and paint supplier Sherwin-Williams (SHW 3.98%) popped Monday morning after news about the company was released late Friday. Shares jumped as much as 7% before paring some of that gain.Still, as of 10:38 a.m. ET, Sherwin-Williams stock was higher by 4%. The move came after news that the well-known company will join the Dow Jones Industrial Average (DJIA) stock index. It will be replacing chemical mak ...

Sherwin-Williams TodaySHWSherwin-Williams$362.72 +1.34 (+0.37%) 52-Week Range$232.06▼$392.57Dividend Yield0.79%P/E Ratio36.97Price Target$390.71Add to WatchlistThe Sherwin-Williams NYSE: SHW Q3 earnings report sparked a knee-jerk reaction in the market, opening a significant opportunity for investors. While the results did not match analysts' and market expectations, the diversified paint and coating business sustained growth and indicated business health will persist in 2025. With shares down 5% and on tra ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------- ...

A tough environment for Sherwin-Williams might mean an opportunity for investors.Shares of paint and coatings supplier Sherwin-Williams (SHW -3.98%) dropped as much as almost 5% after it reported third-quarter earnings today. The company missed Wall Street analyst expectations for both earnings per share and revenue.That not only led to the stock's plunge, but also declines in leading home improvement stocks Home Depot (HD -1.28%) and Lowe's (LOW -1.65%). As of 1:10 p.m. ET, Sherwin-Williams stock was still ...

Core Insights - Sherwin-Williams reported third-quarter results that fell short of analyst expectations, leading to a decline in share prices [1][2] - The company experienced year-over-year growth in sales and profits, but the growth was less than anticipated [1] - CEO Heidi Petz highlighted ongoing "choppiness" and "softness" in demand for paint products, particularly in the North American DIY market [2] Financial Performance - Total sales for the quarter reached $6.16 billion, representing an increase of less than 1% year-over-year, but missing estimates of $6.22 billion [1] - Profits rose over 5% to $806.2 million, yet fell short of the consensus estimate of $873.54 million [1] - The company affirmed its full-year outlook, projecting a flat to low single-digit increase in net sales and earnings per share (EPS) between $10.30 to $10.60 [2] Market Reaction - Following the earnings report, Sherwin-Williams shares dropped nearly 3% at market open, although the stock has gained approximately 19% since the beginning of the year [2]

For the quarter ended September 2024, Sherwin-Williams (SHW) reported revenue of $6.16 billion, up 0.8% over the same period last year. EPS came in at $3.37, compared to $3.20 in the year-ago quarter.The reported revenue represents a surprise of -1.05% over the Zacks Consensus Estimate of $6.23 billion. With the consensus EPS estimate being $3.56, the EPS surprise was -5.34%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...