Sherwin-Williams offers diverse paint products and operates in three segments, boasting a market cap near $90B and a 35-year return of over 20,000%. The stock has offered investors a solid combination of dividend growth and price appreciation. The most recent earnings report was very weak, combine that with the company trading for a significant premium and investors should be cautious of SHW.
Sherwin-Williams (SHW) reported earnings 30 days ago. What's next for the stock?
Sherwin-Williams is joining the Dow, but that's not why investors should buy the stock.
The Sherwin-Williams NYSE: SHW Q3 earnings report sparked a knee-jerk reaction in the market, opening a significant opportunity for investors. While the results did not match analysts' and market expectations, the diversified paint and coating business sustained growth and indicated business health will persist in 2025.
A tough environment for Sherwin-Williams might mean an opportunity for investors.
The Sherwin-Williams Company (NYSE:SHW ) Q3 2024 Earnings Conference Call October 22, 2024 10:00 AM ET Company Participants Jim Jaye - Senior Vice President, Investor Relations & Communications Heidi Petz - President & Chief Executive Officer Al Mistysyn - Chief Financial Officer Conference Call Participants Vincent Andrews - Morgan Stanley Chris Parkinson - Wolfe Research John Roberts - Mizuho John McNulty - BMO David Begleiter - Deutsche Bank Mike Harrison - Seaport Research Partners Patrick Cunningham - Citi Greg Melich - Evercore ISI Aleksey Yefremov - KeyBanc Capital Park Markets Michael Sison - Wells Fargo Duffy Fischer - Goldman Sachs Michael Leithead - Barclays Ghansham Panjabi - Baird Kevin McCarthy - Vertical Research Partners Arun Viswanathan - RBC Capital Markets Jeff Zekauskas - JPMorgan Chuck Cerankosky - Northcoast Research Josh Spector - UBS Steve Byrne - Bank of America Adam Baumgarten - Zelman Garik Shmois - Loop Capital Markets Eric Bosshard - Cleveland Research Company Operator Good morning. Thank you for joining the Sherwin-Williams Company Review of the Third Quarter 2024 Results and our Outlook for the Fourth Quarter and Full Year of 2024.
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.