Paint and coating manufacturer Sherwin-Williams (NYSE:SHW) will be reporting results this Tuesday before market hours. Here’s what to expect.
Sherwin-Williams missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $5.31 billion, down 1.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ organic revenue estimates.
Is Sherwin-Williams a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sherwin-Williams’s revenue to be flat year on year at $6.29 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $3.81 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 7 downward revisions over the last 30 days (we track 17 analysts). 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 Q2 results, giving us a hint as to what we can expect. Insteel delivered year-on-year revenue growth of 23.4%, beating analysts’ expectations by 2.2%, and AZZ reported revenues up 2.1%, falling short of estimates by 3.2%. Insteel traded down 5.8% following the results while AZZ was up 5.2%.
Read our full analysis of Insteel’s results here and AZZ’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 6.5% on average over the last month. Sherwin-Williams is down 1.1% during the same time and is heading into earnings with an average analyst price target of $377.02 (compared to the current share price of $340.07).
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