The 10-second takeaway
For the quarter ended March 31 (Q1), Sherwin-Williams met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins increased, and net margins increased.
Sherwin-Williams reported revenue of $2.14 billion. The nine analysts polled by S&P Capital IQ expected net sales of $2.12 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.86 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 $0.95. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. GAAP EPS of $0.95 for Q1 were 51% higher than the prior-year quarter's $0.63 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 42.6%, 40 basis points worse than the prior-year quarter. Operating margin was 6.9%, 150 basis points better than the prior-year quarter. Net margin was 4.7%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.64 billion. On the bottom line, the average EPS estimate is $2.04.
Next year's average estimate for revenue is $9.76 billion. The average EPS estimate is $6.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 401 members out of 445 rating the stock outperform, and 44 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Sherwin-Williams a green thumbs-up, and 12 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 $105.36.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Sherwin-Williams. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.