Earnings Alerts

Sherwin Williams Co (SHW) Earnings: 2025 EPS Forecast Misses Estimates Despite Strong Q4 Performance

By January 30, 2025 No Comments
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  • Sherwin-Williams’ adjusted EPS forecast for 2025 is between $11.65 and $12.05, below the estimate of $12.58.
  • Full year 2025 diluted net income per share guidance is between $10.70 and $11.10, including expenses related to acquisitions and restructuring.
  • The fourth quarter adjusted EPS was $2.09, slightly above the estimate of $2.05.
  • Fourth quarter net sales were $5.30 billion, narrowly missing the estimate of $5.32 billion.
  • Consumer Brands Group net sales reached $662.2 million, surpassing the estimate of $645.4 million.
  • Performance Coatings Group net sales were $1.59 billion, below the estimate of $1.64 billion.
  • Consumer Brands Group and Performance Coatings Group profits were $66.6 million and $229.0 million, respectively.
  • Capital expenditure for the fourth quarter was $300.0 million, nearly double the estimated $151.1 million.
  • Sherwin-Williams delivered low-single digit growth in new residential markets, outperforming the general market in Q4.
  • Chair, President, and CEO Heidi G. Petz highlighted strong Q4 results despite market demand fluctuations.
  • The company forecasts first-quarter 2025 net sales change (up or down) in low-single digit percentages compared to Q1 2024.
  • Industrial businesses saw double-digit growth in Packaging and low-single digit growth in Coil sectors.
  • Investment analysts show 17 buy ratings, 10 hold ratings, and 2 sell ratings on Sherwin-Williams stock.

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Sherwin Williams Co on Smartkarma

Analysts on Smartkarma are closely monitoring Sherwin Williams Co, with insights pointing towards potential positive developments for the company. Travis Lundy‘s research suggests that Sherwin Williams could benefit from its inclusion in the Dow Jones Industrial Avg following the replacement of Intel Corp. Lundy raises questions about the impact of this change but hints at an exciting future for Sherwin Williams. Similarly, Brian Freitas highlights the significant round-trip trade of US$16.5bn involving Sherwin Williams and mentions the potential for stock movement due to passive trading. Both analysts lean towards a bullish sentiment for Sherwin Williams amidst these changes.

Furthermore, Baptista Research delves into the nuanced growth trajectory of Sherwin Williams, noting positive signs such as growth in consolidated sales and expanded gross margins. Their analysis showcases the company’s strategic positioning in the market and the potential catalyzing effect of focusing on performance coatings growth. Additionally, insights from Business Breakdowns emphasize Sherwin Williams’ consistent growth history, offering a 6.9% yield through bonds and highlighting the company’s leadership in the paint and coatings industry. Overall, the analyst coverage on Smartkarma paints a favorable picture for Sherwin Williams Co, indicating potential growth opportunities and positive market positioning.


A look at Sherwin Williams Co Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE2.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Sherwin Williams Co has a mixed long-term outlook. With a strong Growth score of 4, the company is positioned well for future expansion and development. This suggests that Sherwin Williams Co is likely to experience significant growth opportunities in the coming years. In addition, the Momentum score of 3 indicates that the company has positive trends in its stock performance and operational momentum.

However, Sherwin Williams Co‘s Value, Dividend, and Resilience scores are rated lower at 2. This suggests that the company may not be considered undervalued compared to its industry peers, and its dividend payments and overall financial resilience may not be as strong. Investors may want to consider these factors when evaluating the long-term investment potential of Sherwin Williams Co.

Summary: The Sherwin-Williams Company is a global manufacturer and distributor of paints, coatings, and related products. Its customer base includes professional, industrial, commercial, and retail clients mainly in North and South America. Additionally, Sherwin Williams has a presence in the Caribbean region, Europe, and Asia, showcasing its diversified operations across various geographical markets.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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