Paint and coating manufacturer Sherwin-Williams (NYSE:SHW) will be reporting earnings tomorrow morning. Here’s what to expect.
Sherwin-Williams missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $6.16 billion, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
This quarter, analysts are expecting Sherwin-Williams’s revenue to grow 1.3% year on year to $5.32 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $2.06 per share.
Analysts covering the company have generally 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 four times over the last two years.
Looking at Sherwin-Williams’s peers in the building products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 8.9%, and Insteel reported revenues up 6.6%, topping estimates by 10.4%. Insteel traded up 8.7% following the results.
Read our full analysis of Lennox’s results here and Insteel’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.5% on average over the last month. Sherwin-Williams is up 7.1% during the same time and is heading into earnings with an average analyst price target of $385.01 (compared to the current share price of $364.17).
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