NYSE$SHW

Sherwin-Williams Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Sherwin-Williams reported a sales increase driven by price and volume, but earnings were negatively impacted by raw material costs.

Sherwin-Williams reported a 6.1% increase in consolidated net sales for the fourth quarter, driven by selling price increases and higher product sales volume in the Performance Coatings Group. However, diluted net income per share decreased to $1.15, and adjusted diluted net income per share was $1.34, impacted by lower sales volumes in The Americas Group and the Consumer Brands Group, as well as higher raw material costs.

  • Consolidated net sales increased by 6.1% due to selling price increases and higher product sales volume in the Performance Coatings Group.
  • Diluted net income per share was $1.15, including a charge of $0.19 per share for acquisition-related amortization expense.
  • The Americas Group's net sales increased by 3.0% due to selling price increases, offset by lower sales volume of paint products.
  • Performance Coatings Group's net sales increased by 18.7% due to higher sales in all end markets and selling price increases.

Headline financials

Total Revenue

$4.76B

Previous: $4.49B+6.1%
EPS (adj)

$1.34

Previous: $1.70-21.2%
Net Income

$304M

Previous: $407M-25.3%
Operating Income

$309M

Previous: $504M-38.7%
Gross Profit

$1.88B

Previous: $2.13B-11.7%
Cash & Equivalents

$166M

Previous: $227M-26.9%
Total Assets

$20.7B

Previous: $19.3B+7.0%
Stock-Based Comp

$32.8M

Previous: $23M+42.6%

Revenue & EPS history

Sherwin-Williams · Revenue · Quarterly

$4.76B

Q4 2021+6.1%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Sherwin-Williams · $2.11B total across 2 segments · Q4 2021

  • Performance Coatings Group
    $1.54B+18.7%
  • Consumer Brands Group
    $565M-7.8%

Forward guidance

The company expects first quarter 2022 consolidated net sales will be up a low to mid-single digit percentage compared to the first quarter 2021. For the full-year 2022, the company anticipates its consolidated net sales will increase by a high single digit to low double digit percentage from 2021.

Tailwinds

  • Demand remains strong across our end markets.
  • Full year raw material costs to remain elevated but to moderate sequentially.
  • Continue to implement pricing actions as appropriate to offset increased costs.
  • Expect to outgrow the market long-term.
  • Strong cash generation will enable us to continue to make strategic growth investments in our business.

Headwinds

  • Raw material availability issues to persist through the first quarter.
  • COVID-related issues to persist through the first quarter.
  • Near-term headwinds are expected.
  • Full year raw material costs to remain elevated.
  • Acquisition-related amortization expense of $0.85 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 Q4 2021

Historical avgQ4 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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