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Sep 30, 2020

Sherwin-Williams Q3 2020 Earnings Report

Reported strong third quarter results driven by strength in DIY business, residential repaint and industrial coatings demand.

Key Takeaways

Sherwin-Williams reported a 5.2% increase in consolidated net sales to $5.12 billion for the third quarter of 2020. Diluted net income per share increased to $7.66, and EBITDA increased to $1.11 billion, representing 21.6% of sales.

Consolidated net sales increased 5.2% to $5.12 billion.

Diluted net income per share increased to $7.66 compared to $6.16 in Q3 2019.

EBITDA increased to $1.11 billion, or 21.6% of sales.

Net sales from stores in U.S. and Canada open more than twelve calendar months increased 3.1%.

Total Revenue
$5.12B
Previous year: $4.87B
+5.2%
EPS
$2.76
Previous year: $2.22
+24.3%
Gross Profit
$2.46B
Previous year: $2.23B
+10.3%
Cash and Equivalents
$620M
Previous year: $190M
+227.0%
Total Assets
$20.8B
Previous year: $20.9B
-0.3%

Sherwin-Williams

Sherwin-Williams

Sherwin-Williams Revenue by Segment

Forward Guidance

The company anticipates consolidated net sales will increase by 3% to 7% in the fourth quarter compared to last year. Full year 2020 diluted net income per share guidance is in the range of $21.49 to $21.79 per share.

Positive Outlook

  • Consolidated net sales are expected to increase by 3% to 7% in Q4 2020 compared to Q4 2019.
  • Full year 2020 diluted net income per share guidance is in the range of $21.49 to $21.79 per share.
  • Updated full year 2020 adjusted diluted net income per share guidance of $24.00 to $24.30 per share, excluding $2.51 of acquisition-related amortization expense, compares to $21.12 per share for full year 2019, excluding acquisition-related costs of $3.21 per share and other adjustments of $1.42 per share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income