- Sherwin-Williams Co (NYSE: NYSE:SHW) reported first-quarter FY22 sales growth of 7.4% year-on-year to $4.99 billion, beating the consensus of $4.91 billion.
- The increase in sales was driven by selling price increases in all segments and higher product sales volume in the Performance Coatings Group.
- Sales from stores in the U.S. and Canada rose 3.8% in the quarter.
- Gross profit margin contracted 430 basis points Y/Y to 41.1%.
- Selling, general and administrative expenses rose 6.2% Y/Y to $1.4 billion.
- The company held $401.1 million in cash and equivalents as of March 31, 2022. The company generated $26.3 million in net operating cash during Q1.
- Adjusted EPS of $1.61 beat the analyst consensus of $1.55.
- Adjusted EBITDA fell 18.3% Y/Y to $693 million.
- "While there remains a significant amount of geo-political and raw material inflation uncertainty, demand remains strong across all our architectural and industrial end markets," said Chairman and CEO John G. Morikis.
- Outlook: Sherwin-Williams reaffirmed its FY22 adjusted EPS outlook of $9.25 - $9.65, versus the consensus estimate of $9.31.
- SHW expects Q2 consolidated net sales to increase by a low-double-digit to mid-teens percentage Y/Y.
- Price Action: SHW shares are trading higher by 8.39% at $268.83 on the last check Tuesday.hoto Via Wikimedia Commons
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