Core Insights - Sherwin-Williams reported fourth-quarter 2024 earnings of $1.90 per share, a 36.7% increase from $1.39 in the same quarter last year, with adjusted earnings at $2.09 per share, exceeding the Zacks Consensus Estimate of $2.07 [1][2] Financial Performance - The company posted revenues of $5,297.2 million, reflecting a year-over-year increase of 0.9%, but fell short of the Zacks Consensus Estimate of $5,309.4 million [2] - The Paint Stores Group segment achieved net sales of $3,044.9 million, up 3.4% year over year, although it was below the consensus estimate of $3,047.9 million [3] - The Consumer Brands Group segment saw a decline in net sales by 4.3% year over year to $662.2 million, surpassing the Zacks Consensus Estimate of $643.3 million [4] - The Performance Coatings Group experienced a decrease in net sales by approximately 1.6% year over year to $1,589 million, missing the Zacks Consensus Estimate of $1,611.1 million [5] Segment Analysis - The Paint Stores Group's growth was driven by price increases and sales volume growth, particularly in residential repainting and new construction [3] - The Consumer Brands Group's decline was influenced by a 5.5% negative impact from foreign currency translation, although it was slightly offset by modest sales volume growth [4] - The Performance Coatings Group's sales volume growth was offset by lower selling prices due to product mix, with a 1.7% negative impact from foreign currency translation [5] Cash Flow and Shareholder Returns - For 2024, Sherwin-Williams generated $3.15 billion in net operating cash and returned $2.46 billion to shareholders through dividends and stock repurchases [6] - The company had authorization to repurchase 34.4 million shares of its common stock as of December 31, 2024 [6] Future Outlook - The company anticipates consolidated net sales for Q1 2025 to fluctuate by a low single-digit percentage year over year, with full-year 2025 earnings per share projected between $10.70 and $11.10 [7] - Full-year adjusted earnings per share are expected to range from $11.65 to $12.05, with an effective tax rate forecasted to be in the low 20% for 2025 [7] Stock Performance - Sherwin-Williams shares have increased by 17.2% over the past year, contrasting with a 16.5% decline in the industry [8]

Group 1 - Sherwin-Williams reported revenue of $5.3 billion for the quarter ended December 2024, reflecting a year-over-year increase of 0.9% [1] - The company's EPS for the quarter was $2.09, up from $1.81 in the same quarter last year, indicating a positive trend in earnings [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $5.31 billion, resulting in a revenue surprise of -0.23% [1] - The EPS exceeded the consensus estimate of $2.07, delivering a surprise of +0.97% [1] Group 2 - Sherwin-Williams' shares have returned +6% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The company currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3] Group 3 - In the Paint Stores Group, net new stores totaled 34, below the average estimate of 40 [4] - The number of stores in the Paint Stores Group was 4,773, slightly below the average estimate of 4,779 [4] - Net sales for the Paint Stores Group were reported at $3.04 billion, compared to the estimated $3.05 billion, reflecting a year-over-year increase of +3.4% [4] - Consumer Brands Group net sales were $662.20 million, exceeding the average estimate of $643.28 million, but showing a year-over-year decline of -4.4% [4] - Performance Coatings Group net sales were $1.59 billion, slightly below the average estimate of $1.61 billion, representing a year-over-year decrease of -1.6% [4] - Administrative net sales were reported at $1.10 million, above the average estimate of $1.04 million, with no year-over-year change [4] Group 4 - Segment profit for the Paint Stores Group was $606.40 million, slightly below the estimated $607.10 million [4] - Adjusted segment profit for the Performance Coatings Group was $277.90 million, compared to the average estimate of $279.63 million [4] - Adjusted segment profit for the Consumer Brands Group was $82 million, below the average estimate of $104.81 million [4]

Core Insights - Sherwin-Williams reported strong earnings growth in Q4 2024 with adjusted EPS of $2.09, exceeding analyst expectations, but revenue of $5.297 billion fell short of estimates [1][3] Financial Performance - Adjusted EPS increased by 15.5% year-over-year from $1.81 to $2.09 [3] - Revenue was relatively flat year-over-year, with a slight increase of 0.9% from $5.252 billion to $5.297 billion [3] - Net income rose significantly by 34.8% to $480.1 million compared to $356.2 million in the previous year [3] - Operating margin improved to 11.6%, up from 9% in the prior year [3] Business Segments Overview - Sherwin-Williams operates through three main segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group [4] - The Paint Stores Group achieved a 3.4% increase in net sales to $3.04 billion, with profits rising by 6.9% to $606.4 million [6] - The Consumer Brands Group experienced a 4.3% decline in net sales to $662.2 million but improved profitability significantly from $3.6 million to $66.6 million [7] - The Performance Coatings Group saw a 1.6% drop in net sales but managed a profit increase of 3.9% to $229 million [8] Strategic Focus - The company is focusing on growth through strategic investments, price optimization, operational efficiencies, customer service enhancements, and technology advancements [5] - Management projects diluted net income per share for 2025 in the range of $10.70 to $11.10, and adjusted EPS between $11.65 and $12.05, indicating optimism despite potential demand challenges [9] Future Outlook - The company remains committed to capitalizing on market share opportunities and investing in technology to drive growth [9] - Investors are advised to monitor shifts in market demand and the company's ongoing efforts in technology investments and operational enhancements [10]

Core Viewpoint - Sherwin-Williams reported quarterly earnings of $2.09 per share, exceeding the Zacks Consensus Estimate of $2.07 per share, and showing an increase from $1.81 per share a year ago, indicating a positive earnings surprise of 0.97% [1] Financial Performance - The company posted revenues of $5.3 billion for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.23%, but showing a year-over-year increase from $5.25 billion [2] - Over the last four quarters, Sherwin-Williams has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates during the same period [2] Stock Performance - Sherwin-Williams shares have increased approximately 6% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.21 on revenues of $5.39 billion, and for the current fiscal year, it is $12.36 on revenues of $23.78 billion [7] - The estimate revisions trend for Sherwin-Williams is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Chemical - Specialty industry, to which Sherwin-Williams belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Sherwin-Williams may be influenced by the overall outlook for the industry [8]

Financial Performance - Consolidated Net sales increased to a record $23.10 billion, with a 1.7% increase in net sales from stores in the Paint Stores Group open for more than twelve months[5]. - Diluted net income per share rose 14.1% to $10.55, while adjusted diluted net income per share increased 9.5% to $11.33 for the full year[5]. - Generated net operating cash of $3.15 billion, representing 13.7% of net sales, and returned $2.46 billion to shareholders through dividends and share repurchases[5][18]. - Net sales for Q4 2024 reached $5,297.2 million, a slight increase from $5,252.2 million in Q4 2023, while total net sales for the year were $23,098.5 million compared to $23,051.9 million in 2023[30]. - Net income for Q4 2024 was $480.1 million, up from $356.2 million in Q4 2023, resulting in a diluted net income per share of $1.90 compared to $1.39 in the previous year[30]. - The company reported a net income of $2,681.4 million for the year ended December 31, 2024, compared to $2,388.8 million in 2023, reflecting a year-over-year increase of approximately 12.2%[40]. Sales Performance by Segment - Paint Stores Group net sales increased by 3.4% to $3.04 billion, driven by selling price increases and low-single digit percentage sales volume growth[9]. - Consumer Brands Group net sales decreased by 4.3% to $662.2 million, impacted by a 5.5% unfavorable foreign currency translation[11]. - Performance Coatings Group net sales decreased by 1.6% to $1.59 billion, primarily due to a 1.7% unfavorable foreign currency translation[14]. - The Paint Stores Group generated net sales of $3,044.9 million in Q4 2024, an increase from $2,944.6 million in Q4 2023, with segment profit rising to $606.4 million from $567.3 million[31]. - The Performance Coatings Group reported net sales of $1,589.0 million in Q4 2024, slightly down from $1,614.2 million in Q4 2023, but segment profit increased to $229.0 million from $220.3 million[31]. Future Guidance and Projections - Full year 2025 diluted net income per share guidance is projected to be between $10.70 and $11.10, with adjusted diluted net income per share guidance between $11.65 and $12.05[5][19]. - The company expects first quarter 2025 consolidated net sales to be up or down a low-single digit percentage compared to Q1 2024[20]. - Anticipated costs associated with the transition into new buildings in 2025 are expected to be $100 million, with an additional $40 million increase in interest expense due to refinancing activities[20]. - The company aims to control spending tightly, expecting growth in SG&A to moderate to a low-single digit level[20]. Asset and Liability Management - Total assets increased to $23,632.6 million as of December 31, 2024, compared to $22,954.4 million in 2023, indicating a growth in the company's asset base[34]. - Current liabilities rose to $6,808.7 million in 2024 from $6,626.9 million in 2023, with short-term borrowings increasing to $662.4 million from $374.2 million[34]. Cost Management and Expenses - The administrative segment reported a loss of $286.4 million in Q4 2024, an improvement from a loss of $317.2 million in Q4 2023, indicating better cost management[31]. - The company incurred a loss of $41.8 million related to the devaluation of the Argentine peso during the year ended December 31, 2023[42]. - The company’s total interest expense for the year ended December 31, 2024, was $415.7 million, slightly down from $417.5 million in 2023[40]. Capital Expenditures and Dividends - Capital expenditures for the year ended December 31, 2024, are expected to be $1,070.0 million, up from $888.4 million in 2023, reflecting a growth of about 20.5%[42]. - Cash dividends for the year ended December 31, 2024, are projected at $723.4 million, an increase from $623.7 million in 2023, representing a rise of approximately 16%[42]. Strategic Focus and Risk Management - The company plans to continue focusing on market expansion and product innovation to drive future growth, particularly in international markets[24]. - The company is actively managing risks related to supply chain disruptions and inflation, which could impact future performance[25]. - EBITDA for the year ended December 31, 2024, is reported at $4,491.5 million, compared to $4,149.9 million for the previous year, indicating a year-over-year increase of approximately 8.2%[40]. - Adjusted EBITDA for the year ended December 31, 2024, is reported at $4,239.1 million, compared to $4,149.9 million in 2023, showing an increase of about 2.1%[40].

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 ...