NYSE$SHW

Sherwin-Williams Co · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Sherwin-Williams reported record sales and earnings, driven by strong growth in the Americas Group and Consumer Brands Group.

Sherwin-Williams announced its financial results for the year and fourth quarter ended December 31, 2020. Consolidated net sales for the year increased 2.6% to a record $18.36 billion and increased 9.1% in the quarter to a record $4.49 billion. Diluted net income per share increased in the quarter to $4.46 per share from $2.66 per share for 2019.

  • Consolidated net sales increased 9.1% in the quarter to a record $4.49 billion.
  • Net sales from stores in U.S. and Canada open more than twelve calendar months increased 9.3% in the quarter.
  • Diluted net income per share increased to $4.46 per share from $2.66 per share for 2019.
  • The company anticipates diluted net income per share for 2021 in the range of $23.87 to $24.67 per share, including acquisition-related amortization expense of $2.53 per share

Headline financials

Total Revenue

$4.49B

Previous: $4.11B+9.1%
EPS (adj)

$1.70

Previous: $1.42+19.7%
Net Income

$407M

Previous: $249M+63.7%
Operating Income

$504M

Previous: $297M+69.4%
Gross Profit

$2.13B

Previous: $1.89B+12.4%
Cash & Equivalents

$227M

Previous: $162M+40.0%
Total Assets

$19.3B

Previous: $16.3B+18.2%
Stock-Based Comp

$23M

Previous: $30.8M-25.3%

Revenue & EPS history

Sherwin-Williams · Revenue · Quarterly

$4.49B

Q4 2020+9.1%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Sherwin-Williams · $1.91B total across 2 segments · Q4 2020

  • Performance Coatings Group
    $1.3B+7.3%
  • Consumer Brands Group
    $613M+13.6%

Forward guidance

In the first quarter of 2021, the company anticipates net sales will increase high single digits compared to the first quarter of 2020. For the full year 2021, the company expects net sales to increase mid-to-high single digits compared to full year 2020. With annual sales at that level, the company anticipates diluted net income per share for 2021 will be in the range of $23.87 to $24.67 per share compared to $22.08 per share earned in 2020.

Tailwinds

  • North American new residential and residential repaint demand will remain strong.
  • Industrial businesses have never been better positioned.
  • Industrial demand will continue to improve.
  • Targeting growth at a rate that outpaces the market through customer driven solutions.
  • Ongoing growth investments and multiple growth opportunities.

Headwinds

  • Commercial end markets will likely remain choppy.
  • DIY business will face challenging comparisons.
  • COVID-19 pandemic impacts.
  • Raw material availability and pricing changes.
  • Adverse weather conditions or impacts of climate change.

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 Q4 2020

Historical avgQ4 2020

+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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