Sherwin-Williams Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sherwin-Williams (NYSE:SHW) will unveil its latest earnings on Thursday, July 19, 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 estimate of analysts is for profit of $2.11 per share, a rise of 27.1% 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 $1.99. Between one and three months ago, the average estimate moved up. It has risen from $2.09 during the last month. Analysts are projecting profit to rise by 25.2% compared to last year’s $6.16.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 95 cents per share versus a mean estimate of profit of 94 cents per share.

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A Look Back: In the first quarter, profit rose 46.7% to $100.2 million (95 cents a share) from $68.3 million (63 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 15.1% to $2.14 billion from $1.86 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 13.2% in revenue from the year-earlier quarter to $2.66 billion.

Stock Price Performance: Between April 18, 2012 and July 13, 2012, the stock price rose $12.99 (11.1%), from $117.15 to $130.14. 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.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.9% in the second quarter of the last fiscal year, 14.4% in the third quarter of the last fiscal year and 9.2% in the fourth quarter of the last fiscal year before increasing again in the first 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 8% over the past four quarters.

Analyst Ratings: There are mostly holds on the stock with nine of 12 analysts surveyed giving that rating.

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

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