The Sherwin-Williams Company (NYSE:SHW) is included among the 12 Most Promising Dividend Stocks According to Wall Street Analysts. The Sherwin-Williams Company’s (SHW) Consistent Payouts Make it a Top Pick Among Promising Dividend Stocks The Sherwin-Williams Company (NYSE:SHW) traces its roots back to 1866, and during this time, the company has built a long-standing legacy th⁠at extends well beyond its reputation⁠ as a reli⁠able divide‍nd payer. What began a‍s a modest pain‌t business has grown into‍ a m ...

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Sherwin announced it would be suspending its 401(k) match last week due to tariffs and poor sales. ...

Core Viewpoint - Sherwin-Williams has experienced a 7.1% increase in share price since its last earnings report, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Financial Performance - In Q2 2025, Sherwin-Williams reported earnings of $3 per share, a decline of 14.3% from $3.50 in the same quarter last year, and adjusted earnings of $3.38 per share, missing the Zacks Consensus Estimate of $3.76 [2] - The company generated revenues of approximately $6.31 billion, reflecting a year-over-year increase of 0.7%, surpassing the Zacks Consensus Estimate of $6.28 billion [2] Segmental Review - The Paint Stores Group segment achieved net sales of $3.70 billion, up 2.3% year over year, exceeding the Zacks Consensus Estimate of $3.68 billion, driven by higher selling prices despite a slight decline in volume [3] - The Consumer Brands Group segment saw a 4.1% decline in net sales to $809.4 million, missing the consensus estimate of $821.3 million, attributed to weak DIY demand in North America and unfavorable foreign currency translation [4] - The Performance Coatings Group segment's net sales decreased by approximately 0.3% year over year to around $1.80 billion, beating the consensus estimate of $1.77 billion, with flat sales impacted by lower selling prices [5] Financials - In the first half of 2025, the company generated $1.05 billion in net operating cash and returned $1.27 billion to shareholders through dividends and stock repurchases of 2.5 million shares [6] - As of June 30, 2025, the company had authorization to repurchase 32 million shares of its common stock [6] Outlook - For Q3 and the full year 2025, the company expects net sales to fluctuate by a low-single-digit percentage, indicating a stable revenue outlook [7] - Projected net income per share for the full year ranges between $10.11 and $10.41, while adjusted net income per share is forecasted between $11.20 and $11.50 [7] Estimate Trends - Following the earnings release, there has been a downward trend in estimates for the stock, indicating a shift in investor sentiment [8][11] - Sherwin-Williams currently holds a Zacks Rank 4 (Sell), suggesting expectations of below-average returns in the coming months [11] VGM Scores - The company has a Growth Score of B but lags with a Momentum Score of C and a Value Score of D, placing it in the bottom 40% for the value investment strategy [9][10]

Core Insights - Sherwin-Williams Company (SHW) reported second-quarter 2025 earnings of $3 per share, a decrease of approximately 14.3% from $3.50 in the same quarter last year [1] - Adjusted earnings were $3.38 per share, missing the Zacks Consensus Estimate of $3.76 [1] - Revenues reached $6,314.5 million, reflecting a year-over-year increase of about 0.7%, surpassing the Zacks Consensus Estimate of $6,284 million [1] Segmental Review - The Paint Stores Group segment achieved net sales of $3,702.2 million, up around 2.3% year over year, exceeding the Zacks Consensus Estimate of $3,685.4 million, driven by higher selling prices despite a slight decline in volume [2] - The Consumer Brands Group segment saw a decline in net sales of 4.1% year over year to $809.4 million, falling short of the consensus estimate of $821.3 million, primarily due to weak DIY demand in North America and a 2% negative impact from unfavorable foreign currency translation [3] - The Performance Coatings Group segment reported net sales of approximately $1,801.1 million, a slight decline of 0.3% year over year, but beating the consensus estimate of $1,770.5 million, with increased sales from acquisitions offset by lower selling prices [4] Financials - In the first half of 2025, the company generated $1.05 billion in net operating cash and returned $1.27 billion to shareholders through dividends and stock repurchases of 2.5 million shares [5] - As of June 30, 2025, the company had authorization to repurchase 32 million shares of its common stock through open market purchases [5] Outlook - For the third quarter and full-year 2025, the company expects net sales to fluctuate by a low-single-digit percentage, indicating a stable revenue outlook [6] - The effective tax rate is anticipated to be in the low 20% range for 2025, with projected net income per share between $10.11 and $10.41, and adjusted net income per share forecasted between $11.20 and $11.50 for the full year [6] Price Performance - Sherwin-Williams shares have decreased by 0.9% over the past year, compared to a 2.4% decline in the industry [7]

Financial Data and Key Metrics Changes - Consolidated sales were within the guided range, with growth in the Paint Stores Group offset by softness in other segments [6][8] - Gross margin and gross profit dollars expanded for the twelfth consecutive quarter [7] - Adjusted earnings per share decreased due to higher non-operating costs and targeted growth investments [7][8] - The company returned $716 million to shareholders through share repurchases and dividends [7] Business Line Data and Key Metrics Changes - Paint Stores Group sales increased by a low single-digit percentage, with price mix up by mid-single digits and volume down low single digits [16] - Protective and Marine sales increased by high single digits for the fourth consecutive quarter [16] - Consumer Brands Group sales were below expectations, with volume, price mix, and FX all down by similar low single-digit percentages [18] - Performance Coatings Group sales were in line with expectations, with volume, acquisitions, and FX up by low single-digit percentages [19] Market Data and Key Metrics Changes - The macroeconomic indicators suggest continued turbulence and a slowdown in demand across various segments and regions for the remainder of 2025 [8][21] - Customer sentiment reflects continued uncertainty and hesitancy to invest, with consumer confidence remaining mixed [21][22] Company Strategy and Development Direction - The company is committed to delivering above-market growth despite softening market conditions and is revising its full-year sales expectations downward in the Consumer Brands segment [22][24] - The company plans to continue investing aggressively in the Paint Stores Group while maintaining discipline around SG&A costs [13][25] - A focus on differentiated solutions to help customers become more productive and profitable is emphasized [25][112] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a choppy demand environment and indicated that further deterioration is possible, particularly in new residential, DIY, and coil coatings markets [10][32] - The company expects no help from the market for the remainder of the year but remains focused on market share gains [21][22] - Management expressed confidence in the company's strategy and ability to navigate near-term pressures while expanding its competitive moat [28] Other Important Information - The company is doubling its restructuring initiatives target to approximately $105 million, expecting annual savings of about $80 million [11][117] - Capital expenditures are being reduced by $170 million, moving from $900 million to $730 million [26][80] - The company is focused on opportunistic share repurchases and targeted acquisitions, with the Souvenir acquisition expected to close before the end of the year [27] Q&A Session Summary Question: What gives caution regarding potential deterioration in demand? - Management pointed to new residential, coil, and DIY markets as areas of concern due to volatility and uncertainty [31][33] Question: Which sub-segments in TSG will see the most share gains? - Management indicated opportunities in commercial, new residential, and property maintenance segments, with a focus on aggressive market share gains [36][38] Question: How should SG&A spending be viewed? - SG&A spending is primarily driven by targeted headcount additions and new store openings, with expectations for low single-digit increases in the second half of the year [45][49] Question: What is the outlook for the Consumer Brands Group? - The company noted store closures transitioning from company-owned to dedicated dealers, impacting sales and pricing [57][58] Question: How does product pricing impact market share and volume growth? - The company emphasizes value proposition over price alone, focusing on consistent quality and service to drive new account activity [111][112] Question: What is the magnitude of the restructuring program? - The restructuring program is expected to yield about $80 million in annual savings, with benefits anticipated in the second half of the year [117][118]

Financial Data and Key Metrics Changes - Consolidated sales were within the guided range, with growth in the Paint Stores Group offset by softness in other segments [4] - Gross margin expanded for the twelfth consecutive quarter, with gross profit dollars also increasing [5] - Adjusted earnings per share decreased due to higher non-operating costs and targeted growth investments [5][6] - The company returned $716 million to shareholders through share repurchases and dividends [5] Business Line Data and Key Metrics Changes - Paint Stores Group sales increased by a low single-digit percentage, with price mix up by mid-single digits and volume down low single digits [14] - Protective and Marine sales increased by high single digits for the fourth consecutive quarter [14] - Consumer Brands Group sales were below expectations, with volume, price mix, and FX all down by similar low single-digit percentages [16] - Performance Coatings Group sales were in line with expectations, with volume, acquisitions, and FX up by low single-digit percentages [17] Market Data and Key Metrics Changes - The macroeconomic indicators suggest continued turbulence and a slowdown in demand across various segments and regions [6][19] - Customer sentiment reflects uncertainty and hesitancy to invest, with consumer confidence remaining mixed [19][20] - The company expects no help from the market for the remainder of the year, leading to a downward revision of sales expectations in the Consumer Brands segment [20] Company Strategy and Development Direction - The company is committed to delivering above-market growth despite softening market conditions [6][20] - There is a focus on aggressive investments in the Paint Stores Group and maintaining discipline around SG&A costs [12][23] - The company is reducing CapEx spending for the year by approximately 20%, from $900 million to $730 million [24] - The company plans to continue opportunistically repurchasing shares and pursuing targeted acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current quarter was not perfect but emphasized a disciplined strategy for long-term outperformance [7] - The company is experiencing a choppy demand environment, particularly in new residential, DIY, and coil coatings markets [9][30] - Management expressed confidence in their strategy and the potential for significant market share gains when demand improves [12][40] Other Important Information - The company is doubling its restructuring initiatives target to approximately $105 million for the year, expecting annual savings of about $80 million [10][12] - The company is focused on controlling general and administrative spending while investing in growth initiatives [23] Q&A Session Summary Question: What gives caution regarding potential deterioration in demand? - Management pointed to new residential, coil, and DIY markets as areas of concern, noting volatility and challenges [30] Question: Which sub-segments in TSG might see the most share gains? - Management indicated opportunities in commercial, new residential, and property maintenance segments, with a focus on aggressive market share gains [35][36] Question: How should SG&A spending be viewed moving forward? - Management clarified that SG&A spending would be controlled tightly, with expectations of low single-digit increases in the second half of the year [48] Question: What role does product pricing play in market share growth? - Management emphasized that value proposition and service quality are prioritized over pricing in acquiring new customers [107] Question: What is the outlook for future growth? - Management expects to grow at a rate of 2.5% to 3% once demand improves, with a focus on maintaining market share during the downturn [70]

Group 1 - Sherwin-Williams Co reported a second-quarter profit miss of $3.38 per share, while revenue was slightly above estimates at $6.3 billion, leading to a 2.2% decline in stock price to $333.87 [1] - The company lowered its full-year outlook due to softer demand, which may indicate potential challenges ahead [1] - Mizuho has cut its price target for Sherwin-Williams to $385 from $400, with 17 out of 26 analysts maintaining a "buy" or better rating, suggesting a 14% premium to the current stock price [2] Group 2 - If the current losses persist, Sherwin-Williams could end its four-day winning streak, having previously reached its lowest level since April, with support at the $330 level [3] - Over the past nine months, the shares have decreased by more than 7.3% [3] - A shift in sentiment in the options market is noted, with a 50-day call/put volume ratio of 2.21, indicating a higher level of put activity compared to the past year [4] Group 3 - There has been a significant increase in put options trading, with 2,118 puts traded, which is 11 times the intraday average, compared to only 68 calls, indicating a bearish sentiment [5] - The most popular contract being traded is the August 320 put, with new positions being opened [5]

Core Insights - Sherwin-Williams reported revenue of $6.31 billion for the quarter ended June 2025, a year-over-year increase of 0.7% [1] - The company's EPS for the same period was $3.38, down from $3.70 a year ago, indicating a decline [1] - Revenue exceeded the Zacks Consensus Estimate of $6.28 billion by 0.49%, while EPS fell short of the consensus estimate of $3.76 by 10.11% [1] Financial Performance Metrics - Net New Stores in the Paint Stores Group were 20, matching analyst estimates [4] - The total number of Paint Stores remained at 4,811, consistent with analyst expectations [4] - Net sales for the Paint Stores Group reached $3.7 billion, slightly above the estimated $3.69 billion, reflecting a 2.3% increase year-over-year [4] - Consumer Brands Group net sales were $809.4 million, below the estimated $821.32 million, showing a decline of 4.1% year-over-year [4] - Performance Coatings Group net sales were $1.8 billion, exceeding the average estimate of $1.77 billion, but representing a 0.3% decrease year-over-year [4] - Administrative net sales were reported at $1.8 million, significantly higher than the estimated $0.97 million, marking a 100% increase year-over-year [4] - Segment profit for the Paint Stores Group was $916.5 million, below the average estimate of $948.97 million [4] - Adjusted segment profit for the Performance Coatings Group was $302.3 million, lower than the estimated $335.91 million [4] - Adjusted segment profit for the Consumer Brands Group was $181.4 million, compared to the average estimate of $212.74 million [4] Stock Performance - Sherwin-Williams shares have returned -0.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 5.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - The article discusses potential investment opportunities in AKZOY, indicating a possible beneficial long position may be initiated within 72 hours [1] - The author emphasizes the importance of conducting due diligence and research prior to any investment decisions, particularly in the context of short-term trading and options trading [2] - The article clarifies that past performance is not indicative of future results, and no specific investment recommendations are provided [3]