Paint and coating manufacturer Sherwin-Williams (NYSE: SHW) will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.
Sherwin-Williams beat analysts’ revenue expectations last quarter, reporting revenues of $5.67 billion, up 6.8% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but full-year EPS guidance meeting analysts’ expectations.
Is Sherwin-Williams a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sherwin-Williams’s revenue to grow 4.4% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sherwin-Williams has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sherwin-Williams’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Valmont delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 2.6%, and Apogee reported a revenue decline of 1.1%, topping estimates by 3.4%. Valmont traded down 7.3% following the results.
Read our full analysis of Valmont’s results here and Apogee’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the building products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Sherwin-Williams is down 8% during the same time and is heading into earnings with an average analyst price target of $379.60 (compared to the current share price of $317.69).
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