Sherwin-Williams (SHW) Tops Q1 EPS by 42c, Beats on Revenues; Updated FY18 EPS Guidance Below Consensus

Sherwin-Williams (NYSE: SHW) reported Q1 EPS of $3.57, $0.42 better than the analyst estimate of $3.15. Revenue for the quarter came in at $3.97 billion versus the consensus estimate of $3.94 billion.

• Consolidated net sales increased 43.6% in the quarter to a record $3.97 billion; Valspar sales increased consolidated net sales in the quarter by $1.07 billion, or 38.6%
• Diluted net income per common share increased 3.6% to $2.62 per share in the quarter
  • Consolidated EPS in the first quarter of 2018 and 2017, excluding acquisition-related costs and purchase accounting impacts in both quarters, was $3.57 and $2.61 per share, respectively
  • Charges of $.95 and $.08 per share were recorded in the first quarter of 2018 and 2017, respectively, for acquisition-related costs and purchase accounting impacts
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased 44.0% in the quarter to $551.8 million
• Revising FY18 EPS guidance to $14.95 to $15.45 per share to include an estimated $.40 per share net reduction related to an expanded customer agreement primarily impacting Valspar operations, compared to $18.67 per share in FY17
  • Consolidated FY18 EPS guidance, excluding one-time impacts and acquisition-related costs and purchase accounting impacts, is $18.35 to $18.95 per share, versus $15.07 per share on a comparable basis in FY17
  • Consolidated FY18 EPS guidance includes charges of $3.40 to $3.50 per share for acquisition-related costs and purchase accounting impacts
  • Consolidated FY17 EPS included a one-time benefit of $7.04 per share from deferred income tax reductions, partially offset by charges totaling $3.44 per share for discontinued operations, acquisition-related costs and purchase accounting impacts

GUIDANCE:

Sherwin-Williams sees FY2018 EPS of $18.35-$18.95, versus the consensus of $19.14.

For earnings history and earnings-related data on Sherwin-Williams (SHW) click here.

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