SHW Earnings Prediction
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 -0.61% change in stock price 10 days leading up to the earnings, and a +2.05% change 10 days following the report. On the earnings day itself, the stock moves by -0.30%. This data can give you a slight idea of what to expect for the next quarter's release.
SHW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.30B
0.86%
-14.04%
Gross Margin
48.58%
0.10%
-1.12%
Operating Margin
12.71%
-6.20%
-30.74%
Net Margin
9.06%
33.63%
-30.73%
EPS
1.90
36.69%
-40.25%
No Data Available
SHW Earnings Analysis
Sherwin-Williams Co Corporation (SHW.N) Earnings Conference Call
Positive
Sales and Earnings Growth: Full year consolidated sales increased slightly, driven by targeted investments to gain share, resulting in adjusted earnings per share growth of 15.5% to $11.33 per share.
Strong Cash Generation: Cash generation for the year was $3.2 billion, representing 13.7% of sales, indicating strong financial health and operational efficiency.
Sales Growth in Residential Repaint: The Paint Stores Group saw sales growth led by high single-digit growth in residential repaint, demonstrating effective market positioning and customer engagement.
Segment Margin Expansion: Adjusted segment margin expanded to 18%, the highest level since the Valspar acquisition in 2017, reflecting improved operational performance across segments.
Dividend Increase Announcement: A planned annual dividend increase of 10.5% to $3.16 per share was announced, marking the 47th consecutive year of dividend increases, showcasing commitment to returning value to shareholders.
Negative
Sales Decline Outlook: Consumer Brands Group sales decreased due to unfavorable FX, with a low single digit percentage decline expected in 2025, indicating ongoing challenges in this segment.
Sales Performance Challenges: Performance Coatings Group sales were slightly below expectations, with softness in core accounts and a negative impact from unfavorable price mix and FX, suggesting a struggle to maintain growth in this area.
Increased Interest Expenses: The company anticipates higher interest expenses in 2025, including $40 million related to refinancing debt at higher rates, which will pressure overall profitability.
2025 Earnings Guidance: The guidance for 2025 indicates that diluted net income per share is expected to be in the range of $10.70 to $11.10, reflecting only a mid single digit percent increase compared to 2024's adjusted diluted net income per share of $11.33, highlighting limited growth potential.
Challenging Demand Outlook: The overall demand environment is expected to remain choppy, with no significant improvement anticipated until 2026, which poses a risk to achieving sales and earnings targets in 2025.
