Paint and coating manufacturer Sherwin-Williams (NYSE: SHW) will be announcing earnings results this Tuesday before the bell. Here’s what investors should know.
Sherwin-Williams beat analysts’ revenue expectations last quarter, reporting revenues of $5.60 billion, up 5.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.
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 4.6% year on year, a reversal from the 1.1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Valmont delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3%, and Carlisle reported a revenue decline of 4%, falling short of estimates by 1.1%. Valmont traded up 13.9% following the results while Carlisle’s stock price was unchanged.
Read our full analysis of Valmont’s results here and Carlisle’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 15% on average over the last month. Sherwin-Williams is up 7% during the same time and is heading into earnings with an average analyst price target of $379.90 (compared to the current share price of $337.96).
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