Sherwin-Williams (SHW) reported $5.31 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 1.2%. EPS of $2.25 for the same period compares to $2.17 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $5.35 billion, representing a surprise of -0.76%. The company delivered an EPS surprise of +3.21%, with the consensus EPS estimate being $2.18.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

The Sherwin-Williams Company (SHW) Q1 2025 Earnings Call April 29, 2025 10:00 AM ET Company Participants James Jaye - Senior Vice President of Investor Relations & Corporate CommunicationsHeidi Petz - Chair, President and CEOAllen Mistysyn - Senior VP of Finance & CFOVincent Andrews - Managing DirectorJohn Roberts - Managing DirectorChristopher Parkinson - Managing DirectorGreg Melich - Senior Managing DirectorKevin McCarthy - PartnerJoshua Spector - Executive DirectorGarik Shmois - Managing DirectorMichael ...

Consolidated Net sales decreased primarily due to an approximate 1% impact from unfavorable currency translation. Lower sales in the Performance Coatings and Consumer Brands Groups were partially offset by higher sales in the Paint Stores Group. Income before income taxes increased primarily due to the realization of higher selling prices in the Paint Stores Group and effective cost control, partially offset by lower sales volumes in all segments. Diluted net income per share included a charge of $0.19 per ...

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% year-over-year [2]. - The Consumer Brands Group's estimated net sales are $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% decline compared to the previous year [2]. - The Paint Stores Group is projected to achieve sales of $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].

Core Viewpoint - Sherwin-Williams is expected to report quarterly earnings of $2.18 per share, reflecting a 0.5% increase year-over-year, with revenues projected at $5.38 billion, a 0.2% increase from the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Net sales- Paint Stores Group' will reach $2.92 billion, a 1.6% increase from the year-ago quarter [5]. - 'Net sales- Consumer Brands Group' is projected at $761.41 million, reflecting a 6.1% decrease year-over-year [5]. - 'Net sales- Performance Coatings Group' is expected to be $1.65 billion, indicating a 2.1% decline from the previous year [5]. Store Metrics - The consensus estimate for 'Net New Stores - Paint Stores Group' is 9, compared to 7 in the same quarter last year [6]. - Analysts forecast the 'Number of Stores - Paint Stores Group' to reach 4,782, up from 4,701 in the same quarter of the previous year [6]. Segment Profit Estimates - 'Segment Profit- Paint Stores Group' is predicted to be $520.36 million, an increase from $493.20 million in the same quarter last year [7]. - 'Adjusted segment profit- Performance Coatings Group (PCG)' is expected to be $283.62 million, slightly down from $286.90 million year-over-year [7]. - 'Adjusted segment profit- Consumer Brands Group (CBG)' is projected at $155.01 million, down from $169.90 million in the previous year [8]. Stock Performance - Sherwin-Williams shares have decreased by 3.8% over the past month, compared to a 5.1% decline in the Zacks S&P 500 composite [9].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for PPG Industries in the upcoming earnings report, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - PPG Industries is expected to report quarterly earnings of $1.62 per share, reflecting a year-over-year decrease of 12.9% [3]. - Revenues are projected to be $3.65 billion, down 15.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.39% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +4.16% suggests analysts have recently become more optimistic about PPG's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - PPG Industries currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, PPG Industries was expected to post earnings of $1.65 per share but delivered $1.61, resulting in a surprise of -2.42% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - While PPG Industries is seen as a potential earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [16].

Core Insights - Axalta Coating Systems' digital paint technology, Axalta NextJet™, has been recognized as a 2025 Automotive News PACE Pilot Innovation to Watch, highlighting its potential impact in the automotive and future mobility sectors [1][4] Company Overview - Axalta is a global leader in the coatings industry, providing innovative and sustainable coatings solutions across various applications, including light vehicles, commercial vehicles, and industrial uses [5] - The company has over 150 years of experience and serves more than 100,000 customers in over 140 countries [5] Technology Innovation - Axalta NextJet™ is a next-generation digital paint technology that allows for precise paint placement and design flexibility, eliminating the need for masking and reducing labor, energy, and waste [2] - The technology can contribute to a 30% reduction in CO2 emissions and offers significant cost savings for vehicle manufacturers [2] Industry Recognition - The Automotive News PACE Pilot program recognizes innovations that have the potential to transform the automotive industry, with Axalta's technology being selected after a thorough review process [3][4] - The recognition emphasizes the importance of early-stage innovations that can have a long-term impact on productivity and sustainability in the automotive sector [3]

Financial Data and Key Metrics Changes - Organic revenue increased by 1.9% year on year, driven primarily by positive volume trends [6][12] - EBITDA was $114 million, which was at the high end of guidance, but declined year on year as expected, with an EBITDA margin of 14.5% [6][12] - Adjusted earnings per share (EPS) was $0.54, down compared to the same quarter in 2024, driven by lower operating income [13] - Net debt to EBITDA ratio increased to 3.5 times at the end of the first quarter, up from 3.1 times at the end of 2024 [14] Business Line Data and Key Metrics Changes - In HHC (Hygiene, Health, and Cleaning), organic revenue was up 4% year on year, with an EBITDA margin of 12.7%, down from last year due to higher raw material costs [7][8] - Engineering Adhesives saw a 2% decline in organic revenue, but EBITDA increased by 16%, with an EBITDA margin of 18.7% [9] - Building Adhesive Solutions (BAS) had a 2% increase in organic sales, with EBITDA also increasing by 2% year on year [10] Market Data and Key Metrics Changes - In the Americas, organic revenue was down 1% year on year, driven by declines in HHC and Engineering Adhesives, but BAS achieved over 8% organic revenue growth [10] - EIMEA (Europe, India, Middle East, and Africa) saw a 4% increase in organic revenue, driven by double-digit growth in HHC [11] - Asia Pacific experienced a 7% increase in organic revenue, primarily due to strength in China [11] Company Strategy and Development Direction - The company is focused on maintaining pricing discipline, driving market share gains, and managing costs effectively while optimizing its portfolio mix [5][18] - The strategic direction includes streamlining the cost structure and improving operational efficiency, with a target of achieving greater than 20% EBITDA margin [5][19] - The company is prioritizing share buybacks and has temporarily slowed the timing of M&A transactions due to market volatility [15][16] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to weak overall market demand and unpredictable geopolitical conditions [5] - The company expects to see a favorable net benefit from pricing and raw material actions for the remainder of the year [6] - Management is confident in their ability to adapt and execute in the current environment to deliver growth in organic sales and EBITDA [6][18] Other Important Information - The company is experiencing raw material cost inflation, with about 20% of the portfolio seeing increases [73] - The solar business is expected to remain weak throughout the year, but margins are anticipated to improve as the company repositions away from lower efficiency panels [70][71] Q&A Session Summary Question: What are the current operating conditions and customer management strategies? - Management noted that customers are cautious and not seeing prebuying trends, focusing instead on innovation and new product development [25][26] Question: Can you provide an update on market share and competitive environment? - Management confirmed gaining market share in multiple segments, particularly in HHC, and noted ongoing challenges in the solar market [31][32] Question: What is the outlook for pricing and EBITDA margins in HHC? - Management expects improving margins in HHC throughout the year, ideally reaching a 16% to 17% EBITDA margin range [39][41] Question: How is working capital impacting cash flow? - Management indicated that working capital needs are higher due to volume and pricing growth, but improvements are expected as the year progresses [42][44] Question: What is the outlook for the European and U.S. economies? - Management observed that the U.S. business is slowing, while the European market showed mixed results, with some segments accelerating [80][81] Question: How is the company positioned regarding tariffs and their impact? - Management stated that durable goods production will be more impacted by tariffs, but the company is well-positioned to manage costs in a low-volume environment [102] Question: Are there opportunities in the PFAS-free market? - Management confirmed that they have PFAS-free alternatives and are actively working with customers to capture market share in this area [105]

H.B. Fuller Company (FUL) Q1 2025 Earnings Call March 27, 2025 10:30 AM ET Company Participants Steven Brazones - Investor RelationsCeleste Mastin - President & Chief Executive OfficerJohn Corkrean - Executive VP & CFOKevin McCarthy - PartnerDavid Begleiter - Managing DirectorRachel Lee - Equity Research AssociateRosemarie Morbelli - Portfolio Manager Conference Call Participants Ghansham Panjabi - Senior Research AnalystMichael Harrison - Managing Director and Senior Chemicals AnalystJeffrey Zekauskas - An ...