Sherwin-Williams (SHW) Q3 earnings report preview: what to look for

Paint and coating manufacturer Sherwin-Williams (NYSE:SHW) will be announcing earnings results this Tuesday morning. Here’s what to expect.

Sherwin-Williams beat analysts’ revenue expectations last quarter, reporting revenues of $6.79 billion, up 7.5% year on year. It was an exceptional quarter for the company, with full-year EPS guidance beating analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Is Sherwin-Williams a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Sherwin-Williams’s revenue to grow 6.5% year on year, improving from the 3.2% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sherwin-Williams has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Sherwin-Williams’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Valmont delivered year-on-year revenue growth of 5.5%, missing analysts’ expectations by 1.3%, and Apogee reported revenues up 9.2%, topping estimates by 11.3%. Valmont’s stock price was unchanged after the resultswhile Apogee was up 15.3%.

Read our full analysis of Valmont’s results here and Apogee’s results here.

Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the building products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Sherwin-Williams is up 1.3% during the same time and is heading into earnings with an average analyst price target of $383.13 (compared to the current share price of $336.96).

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