The 10-second takeaway
For the quarter ended March 31 (Q1), Sherwin-Williams missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew significantly.
Margins grew across the board.
Sherwin-Williams reported revenue of $2.17 billion. The eight analysts polled by S&P Capital IQ looked for sales of $2.21 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.11. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share. GAAP EPS of $1.11 for Q1 were 17% higher than the prior-year quarter's $0.95 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 44.4%, 180 basis points better than the prior-year quarter. Operating margin was 8.3%, 140 basis points better than the prior-year quarter. Net margin was 5.4%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.85 billion. On the bottom line, the average EPS estimate is $2.60.
Next year's average estimate for revenue is $10.83 billion. The average EPS estimate is $7.96.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 448 members out of 500 rating the stock outperform, and 52 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 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 $169.31.
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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. The Motley Fool recommends 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.