Sherwin-Williams Company Q3 2024 Results

The Sherwin-Williams Company (NYSE: SHW) reported solid third quarter results in 2024, highlighting consolidated sales growth, improved gross margins, and increased EPS, despite facing temporary store closures due to hurricanes. The company maintains its full-year EPS guidance and plans a 5% price increase across segments to manage rising costs.

Key Takeaways

• Sales growth and increased EPS reported for Q3 2024.
• Temporary closure of ~425 stores due to Hurricanes Helene and Milton.
• 5% price increase planned for January 6, 2025.
• Full-year EPS guidance maintained; wider range due to uncertainties.
• Paint Stores Group saw low single-digit growth; Consumer Brands Group faced high single-digit sales decline.
• Executives optimistic about residential repaint market and remodeling demand.
• Ongoing monitoring of rising raw material costs.

Company Outlook

• Continued investments aimed at capturing long-term market share opportunities.
• Anticipated modest recovery in the second half of 2025.
• Management expects choppy conditions in the first half of 2025.

Bearish Highlights

• Consumer Brands Group experienced a sales decline, exacerbated by unfavorable foreign exchange rates.
• Soft DIY market; Commercial segment facing project delays.
• Elevated SG&A costs in Q3 are expected to normalize in Q4.

Bullish Highlights

• $631 million returned to shareholders through dividends and repurchases.
• Confidence in strategy and commitment to upfront market investments.
• Performance Coatings Group's Packaging segment showed high single-digit growth.

Misses

• 2% decline in COGS due to supply chain efficiencies and favorable FX rates.
• Significant margin improvement in Consumer Brands despite lower sales.

Q&A Highlights

• Executives discussed hurricane impacts, economic conditions, and raw material cost monitoring.

Conclusion

Sherwin-Williams navigates a challenging market with strategic investments and operational efficiency. The company remains committed to addressing rising costs and maintaining growth amidst external pressures.

InvestingPro Insights

Sherwin-Williams' solid Q3 performance is backed by strong financial metrics and a market cap of $92.1 billion, reflecting its significant position in the chemicals industry. The company achieved $23.01 billion in revenue over the last twelve months, with a gross profit margin of 48.07%.

Full Conference Call Transcript

Operator: Good morning. Thank you for joining the Sherwin-Williams Company Review of the Third Quarter 2024 Results… (continued transcript analysis follows)

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