What's in Store for Sherwin-Williams This Earnings Season?

Core Viewpoint - Sherwin-Williams is set to report its first-quarter 2025 results on April 29, with mixed performance in previous quarters and a notable share price increase compared to the industry [1]. Sales Estimates - The Zacks Consensus Estimate for Sherwin-Williams' sales in the upcoming quarter is $5,346.5 million, reflecting a decline of approximately 0.4$761.4 million, indicating a year-over-year decrease of 6.1% [2]. - The Performance Coatings Group is expected to report sales of $1,645.9 million, which represents a 2.1$2,919.9 million, suggesting a 1.6% increase from the year-ago figure [3]. Factors Influencing Performance - Sherwin-Williams has been implementing aggressive cost-reduction strategies, streamlining its supply chain, and enhancing productivity, which are expected to support profit margins in the first quarter [4]. - Price increases and gains from acquisitions are likely to contribute positively to profitability [4]. - However, the Consumer Brands Group may face revenue challenges due to weakness in the DIY market, influenced by inflation and sluggish home sales in North America [5]. - The Performance Coatings Group is also experiencing demand softness in the general industrial sector, particularly in heavy equipment and transportation markets [6]. Earnings Prediction Model - The current model does not predict an earnings beat for Sherwin-Williams this season, as the Earnings ESP is -1.04%, with the Most Accurate Estimate at $2.16 compared to the Zacks Consensus Estimate of$2.18 [8][9]. - Sherwin-Williams holds a Zacks Rank of 3, indicating a hold position [9].