Sherwin-Williams Earnings: What To Look For From SHW

Paint and coating manufacturer Sherwin-Williams (NYSE:SHW) will be announcing earnings results tomorrow before the bell. Here’s what you need to know.

Sherwin-Williams met analysts’ revenue expectations last quarter, reporting revenues of $5.30 billion, flat year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations.

Is Sherwin-Williams a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sherwin-Williams’s revenue to be flat year on year at $5.39 billion, improving from the 1.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.16 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sherwin-Williams has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Sherwin-Williams’s peers in the building products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Carlisle posted flat year-on-year revenue, beating analysts’ expectations by 0.6%, and Valmont reported flat revenue, falling short of estimates by 0.6%. Carlisle traded up 6.1% following the results while Valmont was also up 6.5%.

Read our full analysis of Carlisle’s results here and Valmont’s results here.

Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Sherwin-Williams is down 5% during the same time and is heading into earnings with an average analyst price target of $370.41 (compared to the current share price of $331.64).

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