Sherwin-Williams Company Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sherwin-Williams Company (NYSE:SHW) will unveil its latest earnings on Thursday, July 21, 2011. The Sherwin-Williams Company is a manufacturer and distributor of paint, coatings and related products. Its three segments are: Paint Stores Group, Consumer Group and Global Finishes Group. 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. Builder Confidence Gets a Two Point Bump in July>>

Sherwin-Williams Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.77 per share, a rise of 2.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.86. Between one and three months ago, the average estimate moved down, but it has been unchanged at $1.77 during the last month. For the year, analysts are projecting profit of $5.04 per share, a rise of 13.5% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 11 cents, reporting net income of 63 cents per share against a mean estimate of profit of 52 cents. In the fourth quarter of the last fiscal year, the company exceeded forecasts by 7 cents with net income of 72 cents versus a mean estimate of profit of 65 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $2.39 billion in revenue this quarter, a rise of 11.7% from the year ago quarter. Analysts are forecasting total revenue of $8.62 billion for the year, a rise of 10.8% from last year’s revenue of $7.78 billion.

Analyst Ratings: Analysts seem relatively indifferent about Sherwin-Williams Company with eight of 12 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold while it rose 11.6% in the fourth quarter of the last fiscal year and less than one percent in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 18.5% to $1.86 billion in first quarter. The figure rose 18.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 8.8% in the third quarter of the last fiscal year from the year-ago quarter and 10% in the second quarter of the last fiscal year.

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 May 18, 2011 to July 15, 2011, the stock price had fallen $2.84 (-3.3%) from $86.04 to $83.20. The stock price saw one of its best stretches over the last year between December 7, 2010 and December 22, 2010 when shares rose for 12-straight days, rising 10.1% (+$7.68) over that span. It saw one of its worst periods between July 7, 2011 and July 14, 2011 when shares fell for six-straight days, falling 3.3% (-$2.84) over that span. Shares are up 17 cents (+0.2%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!