Sherwin-Williams (SHW) shares slipped Tuesday morning after the paint manufacturer's third-quarter earnings missed estimates as demand in the do-it-yourself (DIY) painting market slumped.
Although the revenue and EPS for Sherwin-Williams (SHW) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
The increase in SHW's sales in Q3 is due to higher Paint Stores Group sales and the impact of the 2023 acquisition.
I reiterate a 'Sell' rating for The Sherwin-Williams Company, citing overvaluation despite strong leadership and a fair value estimate of $290 per share. Sherwin-Williams' investment in the residential repaint market is crucial for stability and growth, especially amid a weak new housing market. Q3 results show moderate recovery with 2.2% same-store sales growth and a 5% price increase effective January 2025, boosting FY25 performance.
Sherwin-Williams (SHW) came out with quarterly earnings of $3.37 per share, missing the Zacks Consensus Estimate of $3.56 per share. This compares to earnings of $3.20 per share a year ago.
Sherwin Williams missed earnings estimates, showing signs of an exhausted uptrend and potential for a significant selloff if key support levels are broken. Despite reaffirming guidance, the stock's valuation remains high, and margins are pressured by rising SG&A expenses, indicating undisciplined cost management. Seasonality is bullish for November, but current technical indicators suggest the stock needs a breather, with critical support at $346.
The paints and coatings company fell short on quarterly estimates for earnings and sales.
SHW is expected to have gained from its efforts to expand its retail business in response to strong domestic demand and cost actions in Q3.
Beyond analysts' top -and-bottom-line estimates for Sherwin-Williams (SHW), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended September 2024.
Sherwin-Williams (SHW) stock has been firing on all cylinders for decades, making it one of the best non-tech performers in the United States. It has jumped from about $4.68 in 2000 to almost $400 today.
Sherwin-Williams (SHW) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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