Sherwin-Williams Q1 highlights: Selling Price Bump Helps Tops Q1 Estimates, Reiterates Outlook

Sherwin-Williams Co (NYSE: SHW) reported first-quarter FY23 sales growth of 8.9% year-on-year to $5.44 billion, beating the consensus of $5.13 billion.
The increase in sales was driven by selling price increases in all segments and higher architectural sales volume in the Paint Stores Group.
Adjusted EPS of $2.04 beat the analyst consensus of $1.78.
Gross profit margin expanded 340 basis points Y/Y to 44.5%.
Adjusted EBITDA increased 26.9% Y/Y to $879.1 million.
The company held $151.4 million in cash and equivalents and generated $88.2 million in net operating cash.
"We delivered strong results in the first quarter, with higher than expected consolidated net sales, sequential and year-over-year expansion in gross margin, and double-digit percentage growth in diluted net income per share and EBITDA," said Chairman and Chief Executive Officer, John G. Morikis. "Segment margin expanded sequentially and year-over-year in all three of our reportable segments."
Outlook: Sherwin-Williams reiterates FY23 adjusted EPS outlook of $7.95 - $8.65 versus the consensus of $8.48.
It reiterated FY23 revenue growth to be down mid-single digit % to flat.
SHW expects Q2 revenue to be up or down low-single digit %.
Price Action: SHW shares traded higher by 0.25% at $237.16 on the last check Tuesday.

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