What to Expect from Sherwin-Williams

Seth Jayson, The Motley Fool
Updated

Sherwin-Williams (NYS: SHW) is expected to report Q3 earnings on Oct. 25. 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's revenues will grow 7.1% and EPS will grow 28.1%.

The average estimate for revenue is $2.66 billion. On the bottom line, the average EPS estimate is $2.19.


Revenue details
 Last quarter, Sherwin-Williams recorded revenue of $2.57 billion. GAAP reported sales were 9.3% higher than the prior-year quarter's $2.35 billion.

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 $2.17. GAAP EPS of $2.17 for Q2 were 31% higher than the prior-year quarter's $1.66 per share.

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 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

The full year's average estimate for revenue is $9.62 billion. The average EPS estimate is $6.38.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 429 members out of 480 rating the stock outperform, and 51 members rating it underperform. Among 176 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Sherwin-Williams a green thumbs-up, and 14 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 What to Expect from 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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.

Advertisement