Sherwin-Williams Shares Sink on Q4 Results and Outlook

Key Takeaways

  • Sherwin Williams (SHW) noticed the largest losses of any S&P 500 inventory on Jan. 26 as the corporate warned about 2023 revenue and gross sales.
  • The transfer decrease adopted a blended fourth quarter earnings report, with income coming in beneath expectations however revenue beating forecasts.
  • The corporate’s CEO cited challenges together with inflation, limitations on uncooked supplies, and slower financial development.

Sherwin-Williams (SHW) was the worst-performing inventory within the S&P 500 on Jan. 26 because the paint maker posted blended fourth quarter monetary outcomes, and it warned about revenue and gross sales for 2023.

Sherwin-Williams reported income rose 9.8% to $5.23 billion, wanting forecasts. Earnings per share (EPS) of $1.89 beat expectations.

CEO John Morikis defined that the corporate confronted “troublesome working circumstances,” together with “relentless” price inflation, restricted uncooked materials availability, slowing economies, the conflict in Ukraine, and COVID-19 lockdowns in China.

Morikis indicated that the corporate anticipated a “very difficult demand atmosphere” in 2023, particularly from the housing market, which he stated “shall be underneath important stress.” He stated slowdowns in Europe, that are additionally starting to look throughout sure sectors within the U.S., and persevering with COVID-19 considerations in China may even weigh on its enterprise.

2023 Steerage

Sherwin-Williams anticipates full-year EPS of $7.95 to $8.65, whereas it expects income to be flat to down by a mid-single-digit proportion. Each had been nicely beneath analysts’ estimates.

Shares of Sherwin-Williams sank 9% on Jan. 26, they usually’ve misplaced virtually 1 / 4 of their worth up to now 12 months.


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