Latest news with #HeidiPetz
Yahoo
13-05-2025
- Business
- Yahoo
SHW Q1 Earnings Call: Resilient Margins Amid Soft Revenue and Choppy Demand
Paint and coating manufacturer Sherwin-Williams (NYSE:SHW) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 1.1% year on year to $5.31 billion. Its non-GAAP profit of $2.25 per share was 4.1% above analysts' consensus estimates. Is now the time to buy SHW? Find out in our full research report (it's free). Revenue: $5.31 billion vs analyst estimates of $5.39 billion (1.1% year-on-year decline, 1.6% miss) Adjusted EPS: $2.25 vs analyst estimates of $2.16 (4.1% beat) Adjusted EBITDA: $937 million vs analyst estimates of $910.9 million (17.7% margin, 2.9% beat) Management reiterated its full-year Adjusted EPS guidance of $11.85 at the midpoint Operating Margin: 14.3%, in line with the same quarter last year Free Cash Flow was -$450.8 million compared to -$525.2 million in the same quarter last year Locations: 5,115 at quarter end, up from 5,024 in the same quarter last year Organic Revenue was flat year on year, in line with the same quarter last year Market Capitalization: $89.32 billion Sherwin-Williams' Q1 results reflected a challenging demand landscape, with management describing the environment as 'choppy' and marked by continued softness in several end markets. CEO Heidi Petz pointed to low single-digit growth in the Paint Stores Group, underpinned by mid-single-digit price increases, with volume offsetting some of those gains. The Protective and Marine segment stood out, delivering high single-digit growth thanks to infrastructure and energy-related projects, while other divisions faced headwinds. Management emphasized tight cost controls, supply chain efficiencies, and strategic SG&A management as key factors supporting margins, even as revenue fell short of expectations. Looking ahead, management reiterated its full-year guidance, citing confidence in its ability to navigate volatility through ongoing operational improvements and targeted investments. Petz acknowledged persistent uncertainty related to tariffs and broader economic conditions, but reassured that most raw materials are sourced domestically, limiting the direct impact of new trade measures. The company's strategy centers on expanding its competitive moat, leveraging scale and digital investments, and pursuing above-market growth, particularly in areas like residential repaint and select infrastructure projects. Sherwin-Williams' management highlighted several key operational levers and market trends shaping the quarter's results, while also flagging persistent headwinds. The company's ability to drive margin expansion despite a softer top line was a central theme, with ongoing investments in growth and efficiency. Paint Stores Group price execution: Management credited mid-single-digit price increases for offsetting weak volumes, with disciplined implementation and customer engagement leading to strong price realization. The company expects the positive impact of pricing to diminish in coming quarters as prior increases become fully annualized. Protective and Marine momentum: The Protective and Marine division posted high single-digit growth, driven by energy, water, and infrastructure projects. Management reported market share gains and a healthy pipeline of upcoming projects, with new account wins contributing to the performance. Cost controls and digital efficiency: Tight SG&A management and ongoing supply chain improvements were cited as drivers of year-over-year margin expansion. Al Mistysyn, CFO, pointed to the benefits from digitization and simplification initiatives, notably in administrative functions where SG&A fell by a mid-teens percentage. Consumer and DIY headwinds: The Consumer Brands Group faced pressure from weak do-it-yourself (DIY) demand in North America and unfavorable currency exchange impacts. Management noted ongoing efforts with retail partners to stimulate end demand but characterized the segment as 'bumping around a bit.' Suvinil acquisition in Brazil: Leadership expressed optimism about the pending acquisition of BASF's Suvinil business, highlighting its strong market position in Latin America. The deal, expected to close in the second half of the year, is anticipated to complement Sherwin-Williams' existing regional presence and provide new growth avenues. Management expects the next several quarters to remain volatile, driven by continued macroeconomic uncertainty, evolving raw material costs, and the pace of recovery in key end markets. The company's strategic focus is on margin resilience, targeted investments, and expanding market share in core segments. Tariff and cost pressures: While direct exposure to tariffs is limited, management noted that new trade measures could drive low single-digit increases in raw material costs. The company plans to offset these with selective price adjustments and ongoing productivity initiatives. Store expansion and market share: The plan to open 80–100 new stores this year is expected to support growth in the Paint Stores Group, especially in residential repaint and protective segments where market share gains are being realized. Integration of Suvinil acquisition: The anticipated closing and integration of Suvinil in Brazil is viewed as a catalyst for accelerating growth in Latin America, with management citing operational synergies and cross-selling opportunities as likely contributors to future profitability. John McNulty (BMO): Asked about Sherwin-Williams' ability to pass through cost increases from tariffs. Management responded that while most raw materials are sourced domestically, selective price increases may be considered if tariffs persist. Vincent Andrews (Morgan Stanley): Queried about margin resilience despite volume declines. CFO Al Mistysyn attributed margin strength to supply chain efficiencies, positive price mix, and ongoing SG&A discipline. Ghansham Panjabi (Baird): Sought clarity on the outlook for new residential and incremental share gains. CEO Heidi Petz indicated that while the market remains pressured by high mortgage rates, Sherwin-Williams continues to strengthen partnerships and gain position for long-term growth. Kevin McCarthy (Vertical Research Partners): Inquired about the strategic rationale for acquiring Suvinil and its impact on guidance. Management highlighted Suvinil's strong market leadership and confirmed it is not yet included in guidance, pending deal closure. Emily Fusco (Deutsche Bank): Asked if DIY demand is worsening in North America. Management described the segment as remaining under pressure but not deteriorating further, with efforts ongoing to stimulate demand through retail partnerships. Looking ahead, the StockStory team will be monitoring (1) the pace of store openings and whether these translate into sustained market share gains, (2) the integration timeline and early impact of the Suvinil acquisition in Brazil, and (3) the company's ability to maintain or expand margins as raw material and tariff pressures evolve. The effectiveness of operational efficiency initiatives and the trajectory of end-market recovery, particularly in residential and infrastructure segments, will also be important signposts. Sherwin-Williams currently trades at a forward P/E ratio of 29.1×. Should you load up, cash out, or stay put? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Is The Sherwin-Williams Company (SHW) the Best Dow Stock?
We recently published a list of . In this article, we are going to take a look at where The Sherwin-Williams Company (NYSE:SHW) stands against other Dow stocks. The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well. It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends. We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year. In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest. We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a vibrant paint color being sprayed onto a wooden Interest as of Apr 30, 2025: 2.04% The Sherwin-Williams Company (NYSE:SHW) is the manufacturer, developer, distributor, and seller of coatings, paint, and related products. Citing potential weakness in the housing market, analysts at financial services firm Jefferies downgraded the company from Buy to Hold last month, lowering the price target from $423 to $380. SHW is expected to face headwinds in the first half of 2025. However, KeyBanc Securities' analyst Aleksey Yefremov anticipates SHW to gain in the latter half of 2025 on the back of the declining raw material costs. The stock surged 3% right after reporting better-than-expected Q1 earnings. Despite a total sales decline, the company managed to improve its earnings, driven by disciplined cost management and enhanced margins. The Sherwin-Williams Company (NYSE:SHW) also reiterated its full-year 2025 guidance regardless of economic and global supply chain uncertainties. It expects consolidated sales to grow by a low single-digit percentage. Adjusted full-year EPS is anticipated to be in the range of $11.65 to $12.05. CEO Heidi Petz minimized the potential tariff impact by highlighting: 'The largest portion of our revenue is in the United States, and the majority of our raw materials are sourced in the regions where we manufacture. This regional supply strategy helps shield the company from global trade disruptions and inflationary pressure stemming from tariffs.' Overall, SHW ranks 24th on our list of best and worst Dow stocks. While we acknowledge the potential of SHW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SHW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
29-04-2025
- Business
- Reuters
Paintmaker Sherwin-Williams beats first-quarter estimate, boosted by price hikes
April 28 (Reuters) - Sherwin-Williams (SHW.N), opens new tab on Tuesday beat the Wall Street estimate for first-quarter profit, helped by higher prices for its industrial paints, sending its shares up 4.7% before the bell. Sales of U.S. single-family homes increased more than expected in March as buyers rushed to take advantage of a decline in mortgage rates, boosting demand for products such as paints and adhesives. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. At Sherwin-Williams' paint stores group unit, serving architectural and industrial contractors and DIY homeowners, first-quarter net sales rose 2.3% to $2.94 billion. The results come amid a global choppy demand environment for the chemical industry, with companies bracing for impacts from U.S. President Donald Trump's tariffs. "We continue to expect demand softness to persist in several end markets well into the second half of the year," said CEO Heidi Petz. Sherwin-Williams, one of the largest paint and coating companies, reaffirmed its full-year adjusted profit forecast range of $11.65 to $12.05 per share, compared with analysts' estimate of $11.90 per share, according to data compiled by LSEG. Its rival, PPG Industries (PPG.N), opens new tab, is set to report results later on Tuesday. The company posted an adjusted profit of $2.25 per share for the quarter ending March 31, compared with the estimate of $2.16 per share.
Yahoo
01-04-2025
- Business
- Yahoo
Sherwin-Williams to Announce First Quarter 2025 Financial Results on April 29, 2025
CLEVELAND, April 1, 2025 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) will issue a press release announcing its financial results for the first quarter ended March 31, 2025, prior to market open on Tuesday, April 29, 2025. At that time, a copy of the press release and information regarding Sherwin-Williams' financial condition, reportable segment results and other information will be available by clicking on this link Sherwin-Williams Press Releases, then clicking on the reference to the April 29 release. The Company will host a conference call to discuss its financial results for the first quarter, and its outlook for the second quarter and full year 2025, at 10:00 a.m. EDT on Tuesday, April 29, 2025. Participating on the call will be Sherwin-Williams' Chair, President and Chief Executive Officer, Heidi Petz, along with other senior executives. The conference call will be webcast simultaneously in listen only mode. To listen to the webcast on the Sherwin-Williams website, click on this link Sherwin-Williams Quarterly Results, then click on the webcast icon following the reference to the Q1 Webcast. An archived replay of the webcast will be available at the same link beginning approximately two hours after the call ends. Investor Relations Contacts: Jim JayeSenior Vice President, Investor Relations & Corporate CommunicationsSherwin-WilliamsDirect: Eric SwansonVice President, Investor RelationsSherwin-WilliamsDirect: Media Contact: Julie YoungVice President, Global Corporate CommunicationsSherwin-WilliamsDirect: 216.515.8849corporatemedia@ View original content to download multimedia: SOURCE The Sherwin-Williams Company Sign in to access your portfolio
Reuters
30-01-2025
- Business
- Reuters
Sherwin-Williams forecasts annual profit below estimates on soft demand
Jan 30 (Reuters) - Paint maker Sherwin-Williams (SHW.N), opens new tab on Thursday forecast current-year adjusted profit below analysts' expectations, hurt by continued demand choppiness. "We expect demand softness to persist in several end markets well into the second half of the year, if not into 2026," said CEO Heidi Petz. The company's shares were down 1.8% in premarket trading Factory activity in the U.S. ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and China's fragile economic recovery. The chemical industry has also been struggling with sluggish demand recovery, resulting in lower prices, particularly in Europe due to a challenging regulatory landscape which has caused firms to reassess their strategies. However, the Ohio-based company posted an adjusted profit of $2.09 per share for the fourth quarter ended Dec. 31, beating estimates of $2.06 per share, according to data compiled by LSEG, as it benefited from higher sales at its paint stores unit. Net sales at paint stores, the company's biggest segment, rose 3.4% to $3.04 billion during the reported period from a year ago. The company expects full-year adjusted profit in the range of $11.65 per share to $12.05 per share, far below Wall Street expectations of $12.60 per share.
