Sherwin-Williams Q4 Earnings Beat Estimates, Revenues Lag

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]