The Sherwin-Williams Company (NYSE:SHW) makes and distributes paints, coatings and related products, primarily in the North and South America. The company also has operations in the Caribbean region, Europe and Asia. Its well-known brands include Dutch Boy, Minwax and Krylon.
Sherwin-Williams’ Latin American operation remains exposed to currency headwinds and soft end-market demand. Sherwin-Williams also remains exposed to volatility in raw material costs. Nevertheless, Sherwin-Williams follow a strategy of growth through acquisitions and internal initiatives such as efficient working capital management and innovation.
Let’s have a quick look at this paint company’s first-quarter 2017 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Sherwin-Williams for the first quarter has slightly decreased over the past month. The company has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters and missed in 2, with an average beat of around 2.82%.
Earnings
Sherwin-Williams’ adjusted earnings for the quarter came in at $2.27 per share. Earnings surpassed the Zacks Consensus Estimate of $2.07.
Sherwin-Williams Company (The) Price and EPS Surprise
Revenues
Sherwin-Williams reported revenues of $2,761.4 million, up around 7.3% year over year. That also surpassed the Zacks Consensus Estimate of $2,740 million.
Key Developments to Note
Sherwin-Williams projects mid to high single digit percentage increase in net sales, year over year for second-quarter 2017. The company expects earnings per share in the second quarter to be in the range of $4.15 to $4.35 per share, compared to $3.99 earned in the second quarter of 2016. Second-quarter earnings per share includes costs related to the planned acquisition of Valspar of around 25 cents per share
For full-year 2017, Sherwin-Williams projects mid-single digit percentage increase in net sales from 2016. The company now expects earnings per share in the year to be in the range of $13.65 to $13.85 per share, compared to $11.99 earned in 2016. The year’s earnings per share include costs related to the planned acquisition of Valspar of 40 cents per share.
Zacks Rank
Currently, Sherwin-Williams has a Zacks Rank #2 (Buy).
Market Reaction
Sherwin-Williams’ shares remained inactive in the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Sherwin-Williams’ earnings report!
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Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report
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