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Mar 31, 2021

Sherwin-Williams Q1 2021 Earnings Report

Sherwin-Williams reported strong first-quarter results driven by sales growth and margin expansion.

Key Takeaways

Sherwin-Williams reported a 12.3% increase in consolidated net sales to $4.66 billion. Adjusted diluted net income per share increased by 51.5% to $2.06, and adjusted EBITDA increased to $848.7 million. The company saw strong architectural paint demand and improving industrial end markets.

Consolidated net sales increased by 12.3% to $4.66 billion.

Net sales from U.S. and Canada stores open more than twelve months increased by 8.2%.

Adjusted diluted net income per share grew by 51.5% to $2.06.

Adjusted EBITDA increased to $848.7 million, representing 18.2% of sales.

Total Revenue
$4.66B
Previous year: $4.15B
+12.3%
EPS
$2.06
Previous year: $1.36
+51.5%
Same Store Sales Growth
8.2%
Previous year: 7.4%
+10.8%
Gross Profit
$2.11B
Previous year: $1.89B
+11.8%
Cash and Equivalents
$315M
Previous year: $239M
+31.9%
Total Assets
$20.4B
Previous year: $20.6B
-0.7%

Sherwin-Williams

Sherwin-Williams

Sherwin-Williams Revenue by Segment

Forward Guidance

The company anticipates FY21 diluted net income per share in the range of $7.66 to $7.93 per share and expects net sales to be up mid-to-high single digit %.

Positive Outlook

  • Net sales are expected to be up mid-to-high teens % for the second quarter of 2021.
  • Company is very encouraged with our strong start to the year
  • Continuing strength in the demand environment
  • Businesses are extremely well positioned
  • Confident in long-term ability to grow faster than the market

Challenges Ahead

  • Full year adjusted earnings guidance remains unchanged
  • Near-term uncertainty of raw material availability
  • Cost inflation
  • Loss of $0.34 per share from the divestiture
  • Acquisition-related amortization expense of $0.80 per share

Revenue & Expenses

Visualization of income flow from segment revenue to net income