Sherwin-Williams Hits Estimates in Solid Quarter
Sherwin-Williams (NYS: SHW) reported earnings on April 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Sherwin-Williams met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins increased, and net margins increased.
Sherwin-Williams reported revenue of $2.14 billion. The nine analysts polled by S&P Capital IQ expected net sales of $2.12 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.86 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.95. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. GAAP EPS of $0.95 for Q1 were 51% higher than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the 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.
Next quarter's average estimate for revenue is $2.64 billion. On the bottom line, the average EPS estimate is $2.04.
Next year's average estimate for revenue is $9.76 billion. The average EPS estimate is $6.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 401 members out of 445 rating the stock outperform, and 44 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Sherwin-Williams a green thumbs-up, and 12 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.
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At the time this article was published 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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