The chart below shows how SHW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SHW sees a -0.11% change in stock price 10 days leading up to the earnings, and a +2.41% change 10 days following the report. On the earnings day itself, the stock moves by -0.49%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Consolidated Sales Growth: Sherwin-Williams reported consolidated sales growth, driven by strong demand across all segments, with a total sales increase of $631 million in the quarter through dividends and share repurchases.
Positive Performance Outlook: The company maintained a high level of confidence in its strategy and execution capabilities, indicating a positive outlook for future performance.
Improved Operating Margins: Segment operating margins improved, with a reported gross margin increase, reflecting effective cost management and operational efficiencies.
Store Expansion Strategy: Sherwin-Williams opened 45 net new stores year-to-date and expects to open an additional 80 to 100 stores for the full year, indicating strong customer growth and market expansion.
Net Income Growth: The company reported an adjusted diluted net income per share growth of 8.7% over the prior year, demonstrating solid financial performance and profitability.
Negative
Sales Performance Consistency: Sales in all three segments were within our guidance range.
Shareholder Returns: We also returned $631 million to our shareholders in the quarter through dividends and share repurchases.
Segment Margin Decline: Segment margin decreased to 24.5% due primarily to higher investments in long-term growth opportunities and mix the quarter.
DIY Market Sales Decline: Sales decreased by a high single-digit percentage, where weakness in existing home sales and inflation continue to pressure the DIY market.
North America Sales Decline: Sales in North America decreased by a high single-digit percentage, where weakness in existing home sales and inflation continue to pressure the DIY market.
The Sherwin-Williams Company (SHW) Q3 2024 Earnings Call Transcript
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