What's Going On With Sherwin-Williams Shares After Q1 Results?
Portfolio Pulse from Nabaparna Bhattacharya
Sherwin-Williams Company (NYSE:SHW) shares dropped after reporting Q1 results below Wall Street expectations. The company's adjusted EPS was $2.17, missing the forecast of $2.21, and revenue was $5.367 billion, below the expected $5.505 billion. Despite a 1.4% decrease in consolidated net sales and flat sales in stores open more than twelve months, gross profit increased, and the gross margin expanded. Sherwin-Williams returned $728 million to shareholders through dividends and repurchases, and reaffirmed its 2024 EPS guidance of $10.85-$11.35 against an $11.44 estimate. Shares fell 3.2% to $299.37.
April 23, 2024 | 1:39 pm
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Sherwin-Williams shares declined following Q1 earnings and revenue miss, with a reaffirmed 2024 EPS guidance despite lower than expected results.
The immediate negative reaction in Sherwin-Williams' stock price is due to the company's Q1 earnings and revenue falling short of Wall Street expectations. Despite a year-over-year increase in gross profit and an expanded gross margin, the miss on key financial metrics and the reaffirmation of 2024 EPS guidance below analyst estimates likely contributed to investor disappointment. However, the company's commitment to returning value to shareholders through dividends and share repurchases, along with the reaffirmed guidance, may provide some support to the stock in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100