Paint and coating manufacturer Sherwin-Williams (NYSE: SHW) will be announcing earnings results this Thursday before the bell. Here’s what investors should know.
Sherwin-Williams beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $6.36 billion, up 3.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.
Is Sherwin-Williams a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Sherwin-Williams’s revenue to grow 4.8% year on year to $5.55 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.16 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 five 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. AZZ delivered year-on-year revenue growth of 5.5%, beating analysts’ expectations by 1.8%, and Insteel reported revenues up 23.3%, falling short of estimates by 1.3%. AZZ traded up 6.6% following the results while Insteel was also up 1.9%.
Read our full analysis of AZZ’s results here and Insteel’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 9.3% on average over the last month. Sherwin-Williams is up 6.1% during the same time and is heading into earnings with an average analyst price target of $386.29 (compared to the current share price of $344.17).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
