Sherwin-Williams Posts Q1 Earnings Above Street View

Sherwin-Williams Co SHW reported first-quarter FY22 sales growth of 7.4% year-on-year to $4.99 billion, beating the consensus of $4.91 billion.
The increase in sales was driven by selling price increases in all segments and higher product sales volume in the Performance Coatings Group.
Sales from stores in the U.S. and Canada rose 3.8% in the quarter.
Gross profit margin contracted 430 basis points Y/Y to 41.1%.
Selling, general and administrative expenses rose 6.2% Y/Y to $1.4 billion.
The company held $401.1 million in cash and equivalents as of March 31, 2022. The company generated $26.3 million in net operating cash during Q1.
Adjusted EPS of $1.61 beat the analyst consensus of $1.55.
Adjusted EBITDA fell 18.3% Y/Y to $693 million.
"While there remains a significant amount of geo-political and raw material inflation uncertainty, demand remains strong across all our architectural and industrial end markets," said Chairman and CEO John G. Morikis.
Outlook: Sherwin-Williams reaffirmed its FY22 adjusted EPS outlook of $9.25 - $9.65, versus the consensus estimate of $9.31.
SHW expects Q2 consolidated net sales to increase by a low-double-digit to mid-teens percentage Y/Y.
Price Action: SHW shares are trading higher by 8.39% at $268.83 on the last check Tuesday.hoto Via Wikimedia Commons

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