Sherwin-Williams (SHW) Q3 Earnings Report Preview: What To Look For

Paint and coating manufacturer Sherwin-Williams (NYSE:SHW) will be announcing earnings results tomorrow morning. Here’s what investors should know.

Sherwin-Williams met analysts’ revenue expectations last quarter, reporting revenues of $6.27 billion, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.

Is Sherwin-Williams a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sherwin-Williams’s revenue to grow 1.4% year on year to $6.20 billion, in line with the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.55 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sherwin-Williams has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Sherwin-Williams’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AZZ delivered year-on-year revenue growth of 2.6%, meeting analysts’ expectations, and Insteel reported a revenue decline of 14.7%, falling short of estimates by 7.5%. AZZ traded down 5.2% following the results while Insteel was also down 7.4%.

Read our full analysis of AZZ’s results here and Insteel’s results here.

There has been positive sentiment among investors in the building products segment, with share prices up 3.3% on average over the last month. Sherwin-Williams is up 1.7% during the same time and is heading into earnings with an average analyst price target of $384.06 (compared to the current share price of $388.36).

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