Why Is Sherwin-Williams (SHW) Up 2.5% Since Last Earnings Report?

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$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$6.23 billion [3] Segment Analysis - The Paint Stores Group reported net sales of $3.65 billion, a 3.2$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]