- FY Adjusted EPS Forecast Raised: Sherwin-Williams now expects adjusted EPS for the full year 2024 to be between $11.10 and $11.40, compared to the previous forecast of $10.85 to $11.35. The market estimate was $11.37.
- Updated EPS Guidance: The new EPS forecast is $10.30 to $10.60, up from the earlier prediction of $10.05 to $10.55.
- Strong Q2 2024 Results: Adjusted EPS for the second quarter was $3.70, which beat the estimate of $3.48.
- Net Sales Performance: Net sales were $6.27 billion, slightly missing the estimate of $6.34 billion.
- Segment Sales: Consumer Brands Group net sales reached $844.3 million, missing the estimate of $911.2 million. Performance Coatings Group net sales were in line with expectations at $1.81 billion.
- Segment Profit: Consumer Brands Group profit outperformed expectations, hitting $204.4 million compared to the estimate of $176.4 million. Performance Coatings Group profit came in lower at $301.5 million against the estimate of $332.5 million.
- Higher Capital Expenditure: The company’s capital expenditure was $250.9 million, well above the expected $133.2 million.
- FY 2024 Guidance Update: Sherwin-Williams now anticipates full-year 2024 EPS to be between $10.30 and $10.60, inclusive of acquisition-related amortization expense of $0.80 per share.
- Q3 2024 Outlook: The company expects low-single-digit percentage growth in consolidated net sales for the third quarter of 2024 compared to the third quarter of 2023.
- Strategic Execution: President and CEO Heidi G. Petz highlighted the company’s strong performance, particularly in the Paint Stores Group, contributing to consolidated sales, gross margin expansion, EBITDA growth, and a 12.5% increase in adjusted diluted net income per share.
- Consumer Brands Group Challenge: Sales were affected by weak DIY paint demand in North America.
- Performance Coatings Group Success: Growth was driven by strong performance in Industrial Wood and Coil segments.
- Markets Dynamics: Auto Refinish sales saw a low-single-digit increase in North America but were offset by declines in Latin America.
- Analyst Ratings: Sherwin-Williams has 17 buy ratings, 11 hold ratings, and 2 sell ratings.
Sherwin Williams Co on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring Sherwin Williams Co, a key player in the paint and coatings industry. In one report titled, “The Sherwin-Williams Company: What Is Their Market Share Strategy in Emerging Opportunities? – Major Drivers,” Baptista Research notes that while the company’s recent sales and financial metrics were in line with guidance, they fell on the lower end of expectations. Despite this, Sherwin Williams remains optimistic about its full-year outlook, especially looking ahead to the upcoming painting season.
In another report by Baptista Research, titled “The Sherwin-Williams Company: Can Its Dominant Market Position Last? – Major Drivers,” the analysts highlight the strong performance of Sherwin Williams during the fourth quarter of 2023. The company saw sales increase by 4.1% to $23.1 billion and adjusted earnings per share grow by 18.6% to $10.35. This impressive financial performance has positioned Sherwin Williams for a record-breaking year, showcasing its resilience and market dominance in the paint and coatings sector.
A look at Sherwin Williams Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Sherwin Williams Co is positioned with a positive long-term outlook. With a strong Growth score of 4, the company shows potential for expanding its business and increasing its market share. Additionally, with a Momentum score of 3, there is evidence of the company maintaining its upward trajectory in the market. While the Value and Dividend scores are moderate at 2, indicating room for improvement, the overall outlook remains optimistic due to the robust Growth and Momentum scores.
The Sherwin-Williams Company, known for manufacturing and distributing paints, coatings, and related products, caters to a diverse customer base across North and South America, as well as additional operations in the Caribbean region, Europe, and Asia. With a strong emphasis on growth potential and market momentum, Sherwin Williams Co stands to benefit from its strategic positioning in various markets and sectors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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