Sherwin-Williams Beats Analyst Estimates on EPS

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Sherwin-Williams (NYS: SHW) reported earnings on July 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Sherwin-Williams missed estimates on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
Sherwin-Williams reported revenue of $2.57 billion. The 12 analysts polled by S&P Capital IQ expected to see revenue of $2.67 billion on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $2.35 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
EPS came in at $2.17. The 16 earnings estimates compiled by S&P Capital IQ anticipated $2.12 per share. GAAP EPS of $2.17 for Q2 were 31% higher than the prior-year quarter's $1.66 per share.

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

Margin details
For the quarter, gross margin was 44.7%, 130 basis points better than the prior-year quarter. Operating margin was 13.1%, 170 basis points better than the prior-year quarter. Net margin was 8.9%, 130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.75 billion. On the bottom line, the average EPS estimate is $2.15.

Next year's average estimate for revenue is $9.82 billion. The average EPS estimate is $6.24.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 417 members out of 464 rating the stock outperform, and 47 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 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 $124.64.

The article Sherwin-Williams Beats Analyst Estimates on EPS 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.

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