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Mar 31, 2020
Sherwin-Williams Q1 2020 Earnings Report
Sherwin-Williams' first quarter 2020 financial results were reported, showcasing sales growth and increased earnings per share.
Key Takeaways
Sherwin-Williams reported a 2.6% increase in consolidated net sales, reaching $4.15 billion. Diluted net income per share increased to $3.46, and adjusted EBITDA rose by 8.3% to $623.1 million.
Consolidated net sales increased by 2.6% to $4.15 billion.
Net sales from U.S. and Canada stores open more than twelve months increased by 7.4%.
Diluted net income per share increased to $3.46.
Adjusted EBITDA increased by 8.3% to $623.1 million, representing 15.0% of sales.
Revenue by Segment
Forward Guidance
The company anticipates a low-to-mid-teens percentage decrease in second quarter 2020 consolidated net sales compared to the second quarter of 2019. Full year consolidated net sales are expected to be flat to down a low single digit percentage if economic conditions normalize in Q3 and Q4 2020, or down a mid-to-high single digit percentage if conditions do not improve until Q1 2021. Diluted net income per share for 2020 is expected to be in the range of $16.46 to $18.46.
Challenges Ahead
- Rapid deterioration of the U.S. and global economies is expected to continue through the second quarter due to the COVID-19 pandemic.
- No immediate, meaningful improvement is expected in most end markets.
- Second quarter 2020 consolidated net sales are anticipated to decrease by a low-to-mid-teens percentage.
- Full year consolidated net sales may decrease by a mid-to-high single digit percentage if economic conditions do not materially improve until the first quarter 2021.
- Revised diluted net income per share guidance for 2020 is in the range of $16.46 to $18.46, lower than previous guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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