Sherwin-Williams Beats Q2 FY23 Sales Estimates, Driven By Price Increases And Volume Growth

Sherwin-Williams Co SHW reported second-quarter FY23 sales growth of 6.3% year-on-year to $6.24 billion, beating the analyst consensus estimate of $6.03 billion.

The increase in sales was driven by selling price increases, which impacted sales by a mid-single-digit percentage, and mid-single-digit volume growth due to higher architectural sales volume in the Paint Stores Group.

Net sales from stores in the U.S. and Canada open more than twelve calendar months increased 9.5% in the quarter.

Adjusted EPS of $3.29 beat the analyst consensus of $2.69.

Gross profit margin expanded 430 basis points Y/Y to 46%.

Selling, general and administrative expenses rose 10.2% Y/Y to $1.76 billion. Adjusted EBITDA increased 33.7% Y/Y to $1.305 billion.

The company held $209.4 million in cash and equivalents as of June 30, 2023.

Outlook: Sherwin-Williams sees FY23 adjusted EPS of $9.30 - $9.70, below the consensus of $8.79.

The company sees FY23 revenue to be up by a low-single-digit percentage. SHW anticipates that Q3 revenue will either increase or decrease by a low single-digit percentage.

Price Action: SHW shares are trading higher by 3.47% at $277.24 at the last check Tuesday.

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