It's Showtime for Sherwin-Williams

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Sherwin-Williams (NYS: SHW) is expected to report Q2 earnings on July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sherwin-Williams' revenues will improve 13.2% and EPS will increase 27.1%.

The average estimate for revenue is $2.67 billion. On the bottom line, the average EPS estimate is $2.11.


Revenue details
Last quarter, Sherwin-Williams booked revenue of $2.14 billion. GAAP reported sales were 15% higher than the prior-year quarter's $1.86 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.95. GAAP EPS of $0.95 for Q1 were 51% higher than the prior-year quarter's $0.63 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.6%, 40 basis points worse than the prior-year quarter. Operating margin was 6.9%, 150 basis points better than the prior-year quarter. Net margin was 4.7%, 100 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $9.83 billion. The average EPS estimate is $6.19.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 415 members out of 462 rating the stock outperform, and 47 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Sherwin-Williams a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sherwin-Williams is hold, with an average price target of $105.36.

The article It's Showtime for Sherwin-Williams originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Sherwin-Williams. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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