NYSE$SHW

Sherwin-Williams Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sherwin-Williams delivered positive sales growth and significant year-over-year gross margin improvement.

Sherwin-Williams reported solid fourth quarter results with positive sales growth and gross margin improvement. Sales in all three reportable segments were within or better than guidance. The company continued accelerated growth investments and expects continued profitable growth.

  • Consolidated net sales increased 0.4% in Q4.
  • Diluted net income per share decreased 6.1% to $1.39 per share in Q4.
  • Adjusted diluted net income per share decreased 4.2% to $1.81 per share in Q4.
  • Paint Stores Group and Performance Coatings Group segment margins expanded year over year.

Headline financials

Total Revenue

$5.25B

Previous: $5.23B+0.4%
EPS (adj)

$1.81

Previous: $1.89-4.2%
Net Income

$356M

Previous: $386M-7.8%
Operating Income

$474M

Previous: $495M-4.2%
Gross Profit

$2.55B

Previous: $2.23B+14.1%
Stock-Based Comp

$43.1M

Previous: $19.7M+118.8%

Revenue & EPS history

Sherwin-Williams · Revenue · Quarterly

$5.25B

Q4 2023+0.4%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Sherwin-Williams · $2.16B total across 2 segments · Q4 2022

  • Performance Coatings Group
    $1.61B+4.2%
  • Consumer Brands Group
    $552M-2.4%

Forward guidance

The Company expects first quarter 2024 consolidated net sales will be up or down a low-single digit percentage compared to the first quarter of 2023. For the full year 2024, the company expects consolidated net sales to be up a low to mid single digit percentage. Adjusted diluted net income per share guidance of $10.85 to $11.35 per share, which represents 7% growth from 2023 at the mid-point.

Tailwinds

  • Customer-focused differentiated services and solutions
  • Solutions drive customer productivity and profitability
  • Expect to see some recovery in new residential construction
  • Auto Refinish and Protective & Marine demand to remain strong
  • Expect gross margin expansion, and strong cash generation

Headwinds

  • Uncertainties remain in the macro environment
  • Moderation in commercial construction
  • Choppiness in repair and remodel
  • Few catalysts in DIY
  • Continued escalation of wages and other costs

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 2023

Historical avgQ4 2023

+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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