Sherwin-Williams Q4 Earnings Beat Estimates, Revenues Lag

The Sherwin-Williams Company SHW logged fourth-quarter 2024 earnings (as reported) of $1.90 per share, up around 36.7% from $1.39 in the year-ago quarter.Barring one-time items, adjusted earnings in the reported quarter were $2.09 per share, which surpassed the Zacks Consensus Estimate of $2.07.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Sherwin-Williams posted revenues of $5,297.2 million, up around 0.9% year over year. The figure missed the Zacks Consensus Estimate of $5,309.4 million. Consolidated net sales rose owing to increased sales in the Paint Stores Group. The rise was partially offset by reduced sales in the Consumer Brands and Performance Coatings Groups, as well as a 1.3% negative foreign currency translation.The Sherwin-Williams Company Price, Consensus and EPS Surprise The Sherwin-Williams Company price-consensus-eps-surprise-chart | The Sherwin-Williams Company QuoteSHW’s Segmental ReviewThe Paint Stores Group (“PSG”) segment registered net sales of $3,044.9 million in the fourth quarter, up around 3.4% year over year. The figure trailed the consensus estimate of $3,047.9 million. PSG's net sales climbed due to selling price hikes and sales volume growth. Net sales climbed in residential repainting, protective coatings, maritime and new construction. PSG Segment profit grew due to higher net sales.Net sales in the Consumer Brands Group (“CBG”) segment declined 4.3% year over year to $662.2 million, beating the Zacks Consensus Estimate of $643.3 million. CBG's net sales declined due to a 5.5% impact from adverse foreign currency translation in Latin America. This was slightly offset by modest sales volume growth and selling price hikes, which had a low-single-digit impact on net sales. CBG Segment profit increased due to non-recurring charges in the fourth quarter of 2023.Net sales in the Performance Coatings Group decreased roughly 1.6% year over year to $1,589 million in the reported quarter, missing the Zacks Consensus Estimate of $1,611.1 million. PCG's net sales fell owing to a 1.7% impact from adverse foreign currency translation. Sales volume rise in the low single digits was offset by lower selling prices due to product mix. The PCG Segment profit grew due to the Argentine devaluation in the prior-year quarter, partly offset by reduced net sales.SHW’s FinancialsFor 2024, the company generated $3.15 billion in net operating cash and distributed $2.46 billion to shareholders through dividends and stock repurchases. As of Dec. 31, 2024, the company had the authorization to buy back 34.4 million shares of its common stock through open market purchases.Sherwin-Williams’ OutlookThe company forecasts consolidated net sales for the first quarter of 2025 to be up or down a low single-digit percentage year over year and up low single-digit percentage for full-year 2025. It expects full-year 2025 earnings per share to be in the range of $10.70 to $11.1. Full-year adjusted earnings per share are projected to be in the band of $11.65 to $12.05. The company expects effective tax rate of low 20% for 2025.SHW’s Stock Price PerformanceShares of Sherwin-Williams have gained 17.2% in the past year compared with a 16.5% decline of the industry.Image Source: Zacks Investment ResearchSHW’s Zacks Rank & Key PicksSherwin-Williams currently carries a Zacks Rank #4 (Sell).Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd.  ICL, Hecla Mining Company HL and Ingevity Corporation NGVT.ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hecla Mining is expected to report fourth-quarter results on Feb. 12. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%.  5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Sherwin-Williams Company (SHW): Free Stock Analysis Report Hecla Mining Company (HL): Free Stock Analysis Report ICL Group Ltd. (ICL): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks