The 10-second takeaway
For the quarter ended June 30 (Q2), Sherwin-Williams missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins grew across the board.
Sherwin-Williams reported revenue of $2.57 billion. The 12 analysts polled by S&P Capital IQ expected to see revenue of $2.67 billion on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $2.35 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 $2.17. The 16 earnings estimates compiled by S&P Capital IQ anticipated $2.12 per share. GAAP EPS of $2.17 for Q2 were 31% higher than the prior-year quarter's $1.66 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 44.7%, 130 basis points better than the prior-year quarter. Operating margin was 13.1%, 170 basis points better than the prior-year quarter. Net margin was 8.9%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.75 billion. On the bottom line, the average EPS estimate is $2.15.
Next year's average estimate for revenue is $9.82 billion. The average EPS estimate is $6.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 417 members out of 464 rating the stock outperform, and 47 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 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 $124.64.
- Add Sherwin-Williams to My Watchlist.
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.