Sherwin-Williams Q1 2024 Financial Results

The Sherwin-Williams Company (NYSE: SHW) has reported its financial results for the first quarter ended March 31, 2024. The company's consolidated net sales decreased by 1.4% in the quarter to $5.37 billion, with net sales from stores in the paint stores group open more than twelve calendar months remaining approximately flat.

Diluted net income per share increased by 7.1% to $1.97 per share in the quarter compared to $1.84 per share in the first quarter of 2023. Adjusted diluted net income per share also saw an increase of 6.4% to $2.17 per share compared to $2.04 per share in the first quarter of 2023.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 2.0% to $896.2 million, or 16.7% of net sales. The company has also reaffirmed its full-year 2024 diluted net income per share guidance in the range of $10.05 to $10.55 per share, including acquisition-related amortization expense of $0.80 per share, and adjusted diluted net income per share guidance in the range of $10.85 to $11.35 per share.

In terms of specific segment results, the Paint Stores Group (PSG) saw net sales increase by 0.5% to $2,873.0 million, with same-store sales change at -0.1%. The Consumer Brands Group (CBG) experienced a 7.1% decrease in net sales to $811.0 million, while the Performance Coatings Group (PCG) witnessed a 1.6% decrease in net sales to $1,681.9 million.

Looking at the company's liquidity and cash flow, Sherwin-Williams used $58.9 million in net operating cash during the first quarter of 2024, which was primarily a result of seasonal increases in working capital requirements, partially offset by net income. The company returned cash of $728.0 million to shareholders in the form of dividends and repurchases of 1.7 million shares of its common stock during the first quarter of 2024.

Looking ahead, the company expects second-quarter 2024 consolidated net sales to be flat to up a low-single digit percentage compared to the second quarter of 2023. The full-year 2024 guidance remains unchanged, with consolidated net sales expected to be up a low to mid-single digit percentage compared to full-year 2023 and diluted net income per share in the range of $10.05 to $10.55 per share.

Heidi G. Petz, President and Chief Executive Officer of Sherwin-Williams, expressed confidence in the company's customer-focused strategy and its positioning as the painting season begins. She noted that while uncertainties persist in the macroeconomic environment, the company sees growing opportunity and is encouraged by pro architectural demand and sentiment in April.

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial, and retail customers. Sherwin-Williams shares are traded on the New York Stock Exchange under the symbol SHW. As a result of these announcements, the company's shares have moved -3.7% on the market, and are now trading at a price of $297.88. Check out the company's full 8-K submission here.

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