What's in Store for Sherwin-Williams Stock in Q4 Earnings?

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$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$3,048 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].