Sherwin-Williams Company Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sherwin-Williams Company (NYSE:SHW) will unveil its latest earnings on Thursday, January 26, 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 Company Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 84 cents per share, a rise of 16.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 81 cents. Between one and three months ago, the average estimate moved up. It has risen from 83 cents during the last month. For the year, analysts are projecting profit of $4.84 per share, a rise of 9% from last year.

Last quarter, the company came in at net income of $1.71 per share against a mean estimate of profit of $1.70 per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 11 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.05 billion in revenue this quarter, a rise of 7.9% from the year ago quarter. Analysts are forecasting total revenue of $8.75 billion for the year, a rise of 12.5% from last year’s revenue of $7.78 billion.

Analyst Ratings: Analysts seem relatively indifferent about Sherwin-Williams Company with six of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 2.6% to $179.9 million ($1.71 a share) from $175.3 million ($1.60 a share) the year earlier, exceeding analyst expectations. Revenue rose 14.4% to $2.48 billion from $2.17 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 9.9% in the second quarter from the year earlier, climbed 18.5% in the first quarter from the year-ago quarter and 18.6% in the fourth quarter of the last fiscal year.

The increase in profit in the third quarter came after net income fell in the previous quarter. In the second quarter, net income fell 1.4%.

Competitors to Watch: PPG Industries, Inc. (NYSE:PPG), The Home Depot, Inc. (NYSE:HD), Lowe’s Companies, Inc. (NYSE:LOW), The Valspar Corporation (NYSE:VAL), RPM International Inc. (NYSE:RPM), Tractor Supply Company (NASDAQ:TSCO), Builders FirstSource, Inc. (NASDAQ:BLDR).

Stock Price Performance: During October 24, 2011 to January 20, 2012, the stock price had risen $14.36 (17.7%) from $81.23 to $95.59. The stock price saw one of its best stretches over the last year between April 29, 2011 and May 10, 2011 when shares rose for eight-straight days, rising 4% (+$3.25) over that span. It saw one of its worst periods between September 14, 2011 and September 22, 2011 when shares fell for seven-straight days, falling 8.3% (-$6.30) over that span.

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

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