Earnings Per Share (EPS) of $2.09, surpassing estimates.
Revenue of approximately $5.3 billion, slightly missing expectations.
Strong profitability with a 15.5% improvement in adjusted EPS year-over-year.
Sherwin-Williams (NYSE:SHW), a prominent player in the coatings industry, recently reported its earnings for January 30, 2025. The company achieved an EPS of $2.09, surpassing the estimated $2.06. However, its revenue of approximately $5.3 billion slightly missed the expected $5.31 billion. Sherwin-Williams operates through three main segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group.
In the fourth quarter of 2024, Sherwin-Williams reported earnings of $1.90 per share, a significant increase of 36.7% from the previous year’s $1.39. Excluding one-time items, the adjusted EPS was $2.09, exceeding the Zacks Consensus Estimate of $2.07. Despite this, the company’s revenue of $5.3 billion reflected only a 0.9% year-over-year increase, falling short of the $5.31 billion estimate.
The Paint Stores Group drove the rise in consolidated net sales, but this was partially offset by decreased sales in the Consumer Brands and Performance Coatings Groups. Additionally, a 1.3% negative impact from foreign currency translation affected the overall revenue. Despite these challenges, Sherwin-Williams demonstrated strong profitability with a 15.5% improvement in adjusted EPS from the previous year.
Sherwin-Williams faces a volatile market, as highlighted by Market Watch, with sales falling short of market estimates and soft guidance for the first quarter and the entirety of 2025. This has contributed to a decline in its stock price. The company’s financial metrics, such as a P/E ratio of 35.86 and a price-to-sales ratio of 4, reflect investor sentiment and valuation concerns.
The company’s debt-to-equity ratio of 2.91 indicates a reliance on debt financing, while a current ratio of 0.83 suggests potential challenges in covering short-term liabilities. Despite these financial pressures, Sherwin-Williams remains a key player in the industry, navigating through market fluctuations and striving for growth.
