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Dec 31, 2019
Sherwin-Williams Q4 2019 Earnings Report
Sherwin-Williams' Q4 2019 financial results were announced, featuring an increase in consolidated net sales and diluted net income per share compared to Q4 2018.
Key Takeaways
Sherwin-Williams reported a 1.2% increase in consolidated net sales to $4.11 billion and an increase in diluted net income per share to $2.66 for the fourth quarter of 2019. The Americas Group saw a sales increase, while the Performance Coatings Group experienced a decrease. The company's full-year results also showed growth, driven by the strength of its North American paint stores.
Consolidated net sales increased by 1.2% to $4.11 billion due to higher paint sales volume in The Americas Group.
Diluted net income per share increased to $2.66, up from $1.07 in the same quarter of the previous year.
The Americas Group experienced a 4.8% increase in net sales, driven by higher paint sales across most end market segments.
Performance Coatings Group sales decreased by 5.0% due to softer sales outside of North America and unfavorable currency translation.
Revenue by Segment
Forward Guidance
The Company anticipates net sales will increase 2% to 5% compared to the first quarter of 2019. For the full year 2020, we expect net sales to increase 2% to 4% compared to full year 2019. With annual sales at that level, we anticipate diluted net income per share for 2020 will be in the range of $19.91 to $20.71 per share compared to $16.49 per share earned in 2019.
Positive Outlook
- North American architectural demand remaining solid
- Focusing on providing customers with solutions based on innovation
- Focusing on providing customers with solutions based on value-added service
- Focusing on providing customers with solutions based on differentiated distribution
- Expect net sales to increase 2% to 5% compared to the first quarter of 2019
Challenges Ahead
- Industrial demand remaining variable by geography
- Industrial demand remaining variable by end market
- Full year 2020 earnings per share guidance includes acquisition-related costs of approximately $2.79 per share
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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