Insights into Sherwin-Williams's Upcoming Earnings

Sherwin-Williams SHW is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Sherwin-Williams will report an earnings per share (EPS) of $3.54.

The market awaits Sherwin-Williams's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

Last quarter the company beat EPS by $0.22, which was followed by a 3.62% drop in the share price the next day.

Here's a look at Sherwin-Williams's past performance and the resulting price change:

Performance of Sherwin-Williams Shares

Shares of Sherwin-Williams were trading at $388.36 as of October 18. Over the last 52-week period, shares are up 63.68%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Sherwin-Williams

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Sherwin-Williams.

Analysts have provided Sherwin-Williams with 16 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $394.31, suggesting a potential 1.53% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Ecolab, DuPont de Nemours and PPG Indus, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• For Ecolab, analysts project an Outperform trajectory, with an average 1-year price target of $274.92, indicating a potential 29.21% downside.
• As per analysts' assessments, DuPont de Nemours is favoring an Neutral trajectory, with an average 1-year price target of $93.2, suggesting a potential 76.0% downside.
• The consensus outlook from analysts is an Outperform trajectory for PPG Indus, with an average 1-year price target of $147.25, indicating a potential 62.08% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Ecolab, DuPont de Nemours and PPG Indus, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Sherwin-Williams ranks highest in gross profit and return on equity among its peers. It is in the middle for revenue growth.

Get to Know Sherwin-Williams Better

Sherwin-Williams is the largest provider of architectural paint in the United States. The company has over 5,000 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.

Financial Insights: Sherwin-Williams

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Sherwin-Williams showcased positive performance, achieving a revenue growth rate of 0.5% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Sherwin-Williams's net margin is impressive, surpassing industry averages. With a net margin of 14.19%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Sherwin-Williams's ROE excels beyond industry benchmarks, reaching 24.53%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Sherwin-Williams's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.77%, the company showcases efficient use of assets and strong financial health.

Debt Management: Sherwin-Williams's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.28, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Sherwin-Williams visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.