The Sherwin-Williams Company (SHW), headquartered in Cleveland, Ohio, develops, manufactures, distributes, and sells paints, coating, and related products. Valued at $83.9 billion by market cap, the company’s Sherwin-Williams branded products are sold exclusively through a chain of more than 5,000 company-operated stores and facilities, while additional brands are sold through leading mass merchandisers, home centers, and more. The coating giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Jan. 30.
Ahead of the event, analysts expect SHW to report a profit of $2.08 per share on a diluted basis, up 14.9% from $1.81 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect SHW to report EPS of $11.32, up 9.4% from $10.35 in fiscal 2023. Its EPS is expected to rise 11.8% year over year to $12.65 in fiscal 2025.
SHW stock has underperformed the S&P 500’s ($SPX) 23.7% gains over the past 52 weeks, with shares up 9.3% during this period. However, it outperformed the Materials Select Sector SPDR Fund’s (XLB)2.6% losses over the same time frame.
SHW’s performance has been impacted by the challenging economic environment, driven by the ongoing volatility in market demand, rising raw material costs, and increase in interest rates.
On Oct. 22, SHW shares closed down more than 5% after reporting its Q3 results. Its adjusted EPS of $3.37 missed Wall Street expectations of $3.56. The company’s revenue was $6.16 billion, falling short of Wall Street forecasts of $6.23 billion. SHW expects its full-year adjusted EPS to be between $11.10 and $11.40.
Analysts’ consensus opinion on SHW stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 13 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” eight give a “Hold,” and one recommends a “Moderate Sell.” SHW's average analyst price target is $395.91, indicating a potential upside of 18.8% from the current levels.
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