Sherwin-Williams Outperforms In Q4: Surpasses Revenue Estimates, Beats Earnings Consensus
Portfolio Pulse from Nabaparna Bhattacharya
Sherwin-Williams Company (NYSE:SHW) reported Q4 revenue of $5.252 billion, surpassing the consensus of $5.220 billion, with a 0.4% year-over-year growth. Adjusted EPS was $1.81, beating the $1.80 consensus. The company saw an increase in Paint Stores Group net sales volume, a gross profit rise to $2.548 billion, and a gross margin expansion to 48.5%. Full-year sales reached a record $23.05 billion, with an adjusted net income per share increase of 18.6% to $10.35. Sherwin-Williams forecasts FY24 adjusted EPS of $10.85-$11.35, against an analyst consensus of $11.33, and expects Q1 2024 consolidated net sales to change by a low-single-digit percentage year-over-year. SHW shares dropped 1.39% to $297.02.
January 25, 2024 | 5:00 pm
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Sherwin-Williams exceeded Q4 revenue and EPS estimates, reported year-over-year sales growth, and expanded gross margins. The company provided FY24 EPS guidance slightly below analyst expectations.
Despite the positive earnings report, the conservative EPS guidance for FY24 compared to analyst expectations and the current stock price decline suggest a short-term negative impact on SHW's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100