- Adjusted EPS Forecast Cut: Sherwin-Williams revised its full-year adjusted earnings per share (EPS) forecast to a range of $11.20 to $11.50, down from the previous $11.65 to $12.05. Analysts had estimated $11.87.
- EPS Range: Adjusted EPS for the second quarter was reported at $3.38, missing the estimate of $3.81.
- Net Sales Figures: Overall net sales came in at $6.31 billion, slightly above the estimate of $6.3 billion.
- Segment Performance: Paint Stores Group net sales were $3.70 billion, meeting expectations.
- Consumer Brands Group: Net sales reached $809.4 million, falling short of the forecasted $830.8 million, with profits of $164.2 million compared to an estimate of $186 million.
- Performance Coatings Group: Recorded net sales of $1.80 billion, beating the estimate of $1.77 billion, with profits at $245.1 million.
- Capital Expenditure: Expenditure was lower at $181.5 million, below the expected $233.5 million.
- Guidance Updates: Anticipated fluctuations in net sales for the third quarter of 2025 are expected to be a low-single-digit percentage change compared to 2024.
- Financial Impact Factors: Factors affecting EPS include $0.77 for acquisition-related amortization and $0.32 for severance and restructuring expenses.
- Market Conditions: Demand weakness expected to continue into the latter half of 2025, leading to increased restructuring measures costing $59 million.
- Residential Repaint Strength: Despite a downturn, residential repaint sales continue to grow due to prior investments.
- Geographical Sales Impact: Decline in Consumer Brands Group sales is attributed to decreased DIY demand in North America and negative foreign exchange impacts in Latin America, partially offset by growth in Europe.
- Project Development: Faster than expected progress on a new buildings project resulted in $40 million pre-tax transition costs, initially scheduled for the second half of the year.
Sherwin Williams Co on Smartkarma
Analyst coverage on Sherwin-Williams Co by Baptista Research on Smartkarma reveals a positive outlook on the company’s resilience in a challenging housing market. Despite obstacles like high mortgage rates and weak affordability, Sherwin-Williams has shown strong stock performance with a 23% surge in the past year, outperforming the S&P 500. The company’s success is attributed to effective pricing strategies, market share growth, and operational efficiency even amidst market volatility.
In another report, Baptista Research highlights Sherwin-Williams’ strategic moves to expand in emerging markets, aiming for a more balanced global portfolio. Despite facing turbulent demand conditions, the company managed to stay within its sales targets, particularly noting growth in the Paint Stores Group driven by improved pricing and product mix. These insights shed light on the company’s ability to navigate challenges and seek growth opportunities for long-term sustainability.
A look at Sherwin Williams Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 shows a promising long-term outlook. With a strong Growth score of 4, indicating positive potential for expansion, the company is positioned for future development in the paints and coatings market. Additionally, its Resilience and Momentum scores of 3 each suggest a stable and progressive performance in the industry. While the Value and Dividend scores are moderate at 2, the overall outlook for Sherwin Williams Co remains optimistic.
The Sherwin-Williams Company, known for manufacturing and distributing paints, coatings, and related products, caters to a diverse range of customers across North and South America, as well as in the Caribbean, Europe, and Asia. The company’s focus on professional, industrial, commercial, and retail segments highlights its broad market presence and global reach. With a solid Growth score of 4 and consistent Resilience and Momentum scores of 3, Sherwin Williams Co is poised for sustained growth and success in the foreseeable future.
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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