Sherwin-Williams Company SHW reported fourth-quarter FY24 sales growth of 0.9% year-on-year to $5.30 billion, slightly missing the analyst consensus estimate of $5.32 billion.

The increase in sales was driven by higher sales in the Paint Stores Group.

Segment Revenue: Paint Stores Group increased 3.4%, Consumer Brands Group declined 4.3% and Performance Coatings Group dropped 1.6%.

Adjusted EPS of $2.09 beat the consensus estimate of $2.06. 

Gross profit margin remained nearly flat Y/Y to 48.57%. Selling, general and administrative expenses rose 1.4% Y/Y to $1.88 billion.

Adjusted EBITDA decreased 32.6% to $879.1 million.

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The company held $210.4 million in cash and equivalents as of December 31, 2024. Operating cash flow for twelve months totaled $3.15 billion.

The company returned cash of $2.46 billion to shareholders in the form of dividends and repurchases of 5.2 million shares of its common stock during the year.

"Sherwin-Williams delivered strong fourth quarter results despite continued demand choppiness in the majority of our end markets,” said Heidi G. Petz, chair, president and CEO.

“Based on customer sentiment and the macro-economic indicators we see at this time, we expect first quarter 2025 consolidated net sales will be up or down a low-single digit percentage compared to the first quarter of 2024 with the Paint Stores Group at or above the high end of that range," Petz said.

Outlook: Sherwin-Williams sees FY25 adjusted EPS of $11.65 – $12.05, below the consensus of $12.57.

Price Action: SHW shares are trading lower by 2.61% at $351.00 in premarket at the last check Thursday.

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