Sherwin-Williams Company Reports Third Quarter 2024 Financial Results
CLEVELAND, Oct. 22, 2024 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the third quarter ended September 30, 2024.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | QoQ Change | Consensus Estimate | Performance vs. Estimate |
|---|---|---|---|---|---|---|
| Total Revenue | $6.16B | $6.11B | +0.8% | N/A | $6.2B | Missed |
| Diluted EPS | $3.18 | $2.95 | +7.8% | N/A | $3.54 | Missed |
| Adjusted Diluted EPS | $3.37 | N/A | +5.3% | N/A | $3.54 | Missed |
| EBITDA | $1.28B | N/A | +1.2% | N/A | N/A | N/A |
Sherwin-Williams reported a modest increase in revenue and earnings per share compared to the previous year. However, both revenue and earnings per share fell short of analyst expectations, indicating challenges in meeting market forecasts.
Revenue Performance by Segment:
| Segment | Q3 2024 Revenue | YoY Change | Previous Guidance | Performance vs. Guidance |
|---|---|---|---|---|
| Paint Stores Group (PSG) | +3.2% | N/A | N/A | Met |
| Consumer Brands Group | -7.5% | N/A | N/A | Below |
| Performance Coatings | Flat | N/A | N/A | Met |
The Paint Stores Group showed growth driven by increased sales volume and pricing, while the Consumer Brands Group faced declines due to weak DIY demand and currency impacts. Performance Coatings remained stable, with growth in certain segments offset by currency challenges.
Operational Highlights:
Sherwin-Williams returned $631 million to shareholders through dividends and share repurchases, reflecting strong cash generation.
Management Comments:
Heidi G. Petz, President and CEO, stated, 'Despite a challenging demand environment, we achieved growth in sales and earnings. Our strategic investments position us well for future opportunities.'
Dividends and Share Repurchase:
The company declared a quarterly dividend of $0.715 per share, payable on December 6, 2024, to shareholders of record on November 15, 2024.
Forward Guidance:
Sherwin-Williams reaffirmed its full-year 2024 guidance, projecting diluted EPS between $10.30 and $10.60, and adjusted diluted EPS between $11.10 and $11.40. The company expects Q4 2024 sales to be flat to slightly up compared to Q4 2023.
Stock Price Movement:
Following the earnings release, Sherwin-Williams' stock price experienced a decline of approximately 6.44%, reflecting investor concerns over the earnings miss and revenue shortfall.
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