Sherwin-Williams Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Sherwin-Williams (NYSE:SHW) will unveil its latest earnings on Thursday, October 25, 2012. Sherwin-Williams is a manufacturer and distributor of paint, coatings and related products. While its professional, industrial, commercial and retail customers are mainly in North and South America, the company also has operations in Europe, Asia and the Caribbean.

Sherwin-Williams Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $2.19 per share, a rise of 28.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $2.16. Between one and three months ago, the average estimate moved up. It has been unchanged at $2.19 during the last month. Analysts are projecting profit to rise by 29.9% versus last year to $6.39.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting profit of $2.17 per share against a mean estimate of net income of $2.12 per share.

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A Look Back: In the second quarter, profit rose 27.2% to $227.8 million ($2.17 a share) from $179.1 million ($1.66 a share) the year earlier, exceeding analyst expectations. Revenue rose 9.3% to $2.57 billion from $2.35 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $17.34 (13%), from $133.17 to $150.51. The stock price saw one of its best stretches over the last year between May 17, 2012 and May 29, 2012, when shares rose for eight straight days, increasing 12% (+$13.90) over that span. It saw one of its worst periods between May 9, 2012 and May 17, 2012 when shares fell for seven straight days, dropping 6.8% (-$8.43) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 7.3% in revenue from the year-earlier quarter to $2.66 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.4% in the third quarter of the last fiscal year, 9.2% in the fourth quarter of the last fiscal year and 15.1% in the first quarter before increasing again in the second quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 0.9% over the past four quarters.

Analyst Ratings: There are mostly holds on the stock with 10 of 14 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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