Sherwin-Williams Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sherwin-Williams (NYSE:SHW) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. 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 estimate of analysts is for profit of $1.15 per share, a rise of 32.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 32.5% versus last year to $6.52.

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 net income of $2.24 per share against a mean estimate of profit of $2.19 per share.

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A Look Back: In the third quarter, profit rose 30.6% to $235 million ($2.24 a share) from $179.9 million ($1.71 a share) the year earlier, exceeding analyst expectations. Revenue rose 4.8% to $2.6 billion from $2.48 billion.

Here’s how Sherwin-Williams traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: Analysts predict a rise of 5.8% in revenue from the year-earlier quarter to $2.19 billion.

Analyst Ratings: There are mostly holds on the stock with 11 of 14 analysts surveyed giving that rating.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 46.7% in the first quarter and 27.2% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.2% in the fourth quarter of the last fiscal year, 15.1% in the first quarter and 9.3% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.14 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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