Sherwin-Williams' (SHW) Q1 2024 earnings fell short of forecasts due to several factors impacting its financial performance:
- Revenue Decline: The company's total revenue for the quarter was $5.3 billion, which was lower than the expected $5.21 billion1. This decline in revenue was a result of lower sales in the Consumer Brands segment, due to weaker DIY demand in North America, and divestitures. These factors were exacerbated by unfavorable currency impacts23.
- Net Income Impact: Despite the revenue shortfall, Sherwin-Williams reported a net income of $480.1 million for the quarter, which included an EPS surprise of $0.024. This positive surprise was a result of cost-cutting measures and supply chain efficiency improvements, which helped boost segment margins and net profitability5.
- Analyst Expectations: Analysts had expected Sherwin-Williams to post earnings of $2.77 per share for the quarter, but the company reported earnings of $3.20, delivering a surprise of +15.52%6. This suggests that the forecast miss may have been due to underestimating the company's cost management and operational efficiency.
In conclusion, Sherwin-Williams' Q1 2024 earnings fell short of forecasts primarily due to lower-than-expected revenues, particularly in the Consumer Brands segment, and divestitures. However, the company's cost-cutting measures and supply chain efficiency improvements helped mitigate these effects and resulted in a positive net income surprise.
4/10/2025 05:47am
