Earnings To Watch: Sherwin-Williams (SHW) Reports Q3 Results Tomorrow

SHW Cover Image

Paint and coating manufacturer Sherwin-Williams (NYSE: SHW) will be reporting earnings this Tuesday before market hours. Here’s what you need to know.

Sherwin-Williams met analysts’ revenue expectations last quarter, reporting revenues of $6.31 billion, flat year on year. It was a softer quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

Is Sherwin-Williams a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Sherwin-Williams’s revenue to be flat year on year at $6.2 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $3.44 per share.

Sherwin-Williams Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sherwin-Williams has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Sherwin-Williams’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Valmont delivered year-on-year revenue growth of 2.5%, beating analysts’ expectations by 1.5%, and Apogee reported revenues up 4.6%, topping estimates by 2.1%. Valmont traded down 1.8% following the results while Apogee was also down 4.5%.

Read our full analysis of Valmont’s results here and Apogee’s results here.

There has been positive sentiment among investors in the building products segment, with share prices up 3.7% on average over the last month. Sherwin-Williams is down 3% during the same time and is heading into earnings with an average analyst price target of $377.71 (compared to the current share price of $332.50).

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