The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sherwin-Williams beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins increased across the board.
Sherwin-Williams reported revenue of $2.22 billion. The 14 analysts polled by S&P Capital IQ expected a top line of $2.19 billion on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $2.07 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.14. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.15 per share. GAAP EPS of $1.12 for Q4 were much higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.5%, 270 basis points better than the prior-year quarter. Operating margin was 8.4%, 210 basis points better than the prior-year quarter. Net margin was 5.3%, 460 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $10.60 billion. The average EPS estimate is $7.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 439 members out of 490 rating the stock outperform, and 51 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give Sherwin-Williams a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sherwin-Williams is hold, with an average price target of $157.07.
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