NYSE$SHW

Sherwin-Williams Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Sherwin-Williams reported strong first-quarter results driven by sales growth and margin expansion.

Sherwin-Williams reported a 12.3% increase in consolidated net sales to $4.66 billion. Adjusted diluted net income per share increased by 51.5% to $2.06, and adjusted EBITDA increased to $848.7 million. The company saw strong architectural paint demand and improving industrial end markets.

  • Consolidated net sales increased by 12.3% to $4.66 billion.
  • Net sales from U.S. and Canada stores open more than twelve months increased by 8.2%.
  • Adjusted diluted net income per share grew by 51.5% to $2.06.
  • Adjusted EBITDA increased to $848.7 million, representing 18.2% of sales.

Headline financials

Total Revenue

$4.66B

Previous: $4.15B+12.3%
EPS (adj)

$2.06

Previous: $1.36+51.5%
Same-store sales change

8.2%

Previous: 7.4%+10.8%
Free Cash Flow

$410M

Previous: $322M+27.3%
Net Income

$410M

Previous: $322M+27.3%
Operating Income

$768M

Previous: $586M+31.1%
Gross Profit

$2.11B

Previous: $1.89B+11.8%
Cash & Equivalents

$315M

Previous: $239M+31.9%
Total Assets

$20.4B

Previous: $20.6B-0.7%
Stock-Based Comp

$13.5M

Previous: $20.1M-32.8%

Revenue & EPS history

Sherwin-Williams · Revenue · Quarterly

$4.66B

Q1 2021+12.3%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Sherwin-Williams · $2.15B total across 2 segments · Q1 2021

  • Performance Coatings Group
    $1.37B+12.9%
  • Consumer Brands Group
    $778M+25.0%

Forward guidance

The company anticipates FY21 diluted net income per share in the range of $7.66 to $7.93 per share and expects net sales to be up mid-to-high single digit %.

Tailwinds

  • Net sales are expected to be up mid-to-high teens % for the second quarter of 2021.
  • Company is very encouraged with our strong start to the year
  • Continuing strength in the demand environment
  • Businesses are extremely well positioned
  • Confident in long-term ability to grow faster than the market

Headwinds

  • Full year adjusted earnings guidance remains unchanged
  • Near-term uncertainty of raw material availability
  • Cost inflation
  • Loss of $0.34 per share from the divestiture
  • Acquisition-related amortization expense of $0.80 per share

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+2.1%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+12.6%

Q1 2022

Best reaction

-10.3%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-5.4%-9.4%
Q4 2025+0.2%+2.9%+3.7%
Q3 2025+5.5%+2.6%+2.2%
Q2 2025-0.9%-0.2%-2.4%
Q1 2025+4.8%+8.3%+7.1%
Q4 2024+1.4%-0.8%+0.5%
Q3 2024-5.0%-5.9%+0.4%
Q2 2024+3.0%+8.3%+11.0%
Q1 2024-1.8%-0.9%-2.0%
Q4 2023+0.3%+2.2%+7.0%
Q3 2023-0.0%-1.1%+15.1%
Q2 2023+4.8%+4.5%+0.5%
Q1 2023-3.2%+0.4%-4.2%
Q4 2022-7.5%-4.2%-10.5%
Q3 2022+3.9%+6.4%+17.6%
Q2 2022-4.4%-4.4%-7.3%
Q1 2022+12.6%+10.9%+9.7%
Q4 2021-1.7%-4.3%-14.0%
Q3 2021+2.5%+2.2%+5.9%
Q2 2021+0.7%+1.9%+5.9%
Q1 2021-0.2%+1.6%+6.0%
Q4 2020-3.6%-1.0%-5.2%
Q3 2020+1.2%+2.6%+9.1%
Q2 2020+3.5%+3.6%+7.4%
Q1 2020+5.4%+4.0%+16.7%
Q4 2019-5.6%-0.6%-12.5%
Q3 2019+2.4%+4.5%+3.3%
Q2 2019+10.2%+12.7%+15.2%
Q1 2019+1.3%+1.1%-4.7%
Q4 2018+2.9%+4.1%+7.7%
Q3 2018-4.5%-0.8%+7.0%
Q2 2018+3.7%+5.3%+4.3%
Q1 2018-3.9%-3.2%-0.3%
Q4 2017-1.3%-1.9%-7.3%
Q3 2017+1.5%+2.8%+1.0%
Q2 2017-2.1%-2.1%-8.5%
Q1 2017+4.2%+6.3%+6.7%
Q4 2016+7.7%+7.2%+10.3%
Q3 2016-10.3%-11.9%-2.0%
Q2 2016-5.9%-6.2%-7.8%
Q1 2016-0.3%
Q4 2015+1.4%
Q3 2015+8.1%
Q2 2015-5.7%
Q1 2015-2.3%
Q4 2014+0.1%
Q3 2014-1.7%
Q2 2014+5.2%
Q1 2014+2.9%
Q4 2013-3.1%
Q3 2013+3.1%
Q2 2013-5.6%
Q1 2013+4.8%
Q4 2012+0.9%
Q3 2012-8.0%
Q2 2012+3.1%
Q1 2012+1.0%
Q4 2011+1.1%
Q3 2011+2.9%
Q2 2011-2.2%
Q1 2011+1.4%
Q4 2010-3.5%
Q3 2010+1.4%
Q2 2010-0.4%
Q1 2009-0.3%
Q1 2010+1.9%
Q4 2009+0.3%
Q4 2007+0.3%
Q3 2008-2.0%
Q3 2009-2.0%
Q2 2009+3.9%
Q2 2008+3.9%
Q4 2008+3.9%

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