Sherwin-Williams Q4 2023 Earnings Report
Key Takeaways
Sherwin-Williams reported solid fourth quarter results with positive sales growth and gross margin improvement. Sales in all three reportable segments were within or better than guidance. The company continued accelerated growth investments and expects continued profitable growth.
Consolidated net sales increased 0.4% in Q4.
Diluted net income per share decreased 6.1% to $1.39 per share in Q4.
Adjusted diluted net income per share decreased 4.2% to $1.81 per share in Q4.
Paint Stores Group and Performance Coatings Group segment margins expanded year over year.
Sherwin-Williams
Sherwin-Williams
Sherwin-Williams Revenue by Segment
Forward Guidance
The Company expects first quarter 2024 consolidated net sales will be up or down a low-single digit percentage compared to the first quarter of 2023. For the full year 2024, the company expects consolidated net sales to be up a low to mid single digit percentage. Adjusted diluted net income per share guidance of $10.85 to $11.35 per share, which represents 7% growth from 2023 at the mid-point.
Positive Outlook
- Customer-focused differentiated services and solutions
- Solutions drive customer productivity and profitability
- Expect to see some recovery in new residential construction
- Auto Refinish and Protective & Marine demand to remain strong
- Expect gross margin expansion, and strong cash generation
Challenges Ahead
- Uncertainties remain in the macro environment
- Moderation in commercial construction
- Choppiness in repair and remodel
- Few catalysts in DIY
- Continued escalation of wages and other costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income