Sherwin-Williams (NYSE:SHW) Receives "Buy" Rating from Goldman Sachs Amidst Q3 Earnings Miss

• Goldman Sachs reaffirms its "Buy" rating for Sherwin-Williams (NYSE:SHW), despite the stock's decline following its Q3 earnings report.
• The company's Q3 earnings fell short of expectations, with total sales of $6.16 billion and profits of $806.2 million.
• Sherwin-Williams' stock price experienced a decrease of 5.34%, trading between a low of $361.01 and a high of $389 on the day of the report.

On October 23, 2024, Goldman Sachs reiterated its "Buy" rating for Sherwin-Williams (NYSE:SHW), with the stock trading at $361.38. Sherwin-Williams is a leading paint and coatings manufacturer, known for its wide range of products catering to both professional and DIY markets. The company competes with other industry giants like PPG Industries and AkzoNobel.

Sherwin-Williams recently held its Q3 2024 earnings conference call, featuring key executives like CEO Heidi Petz and CFO Al Mistysyn. The call, attended by analysts from major financial institutions, provided insights into the company's performance and future outlook. Despite the "Buy" rating from Goldman Sachs, the stock experienced a decline following the earnings release.

The company's Q3 2024 earnings fell short of expectations, with total sales of $6.16 billion, missing the anticipated $6.22 billion. Profits rose by just over 5% to $806.2 million, but this was below the $873.54 million consensus estimate. CEO Heidi Petz cited "continued choppiness" and "softness" in demand, particularly in the DIY market, as reasons for the underperformance.

Sherwin-Williams reported earnings of $3.37 per share, which was below the Zacks Consensus Estimate of $3.56 per share. This represents a negative surprise of 5.34%. In contrast, the previous quarter saw a positive surprise, with earnings of $3.70 per share against an anticipated $3.51. Over the past four quarters, the company has exceeded consensus EPS estimates twice.

The stock, currently priced at $361.38, has seen a decrease of 5.34%, with a change of -$20.37. It has traded between a low of $361.01 and a high of $389 today. Over the past year, SHW has reached a high of $392.57 and a low of $232.06. The market capitalization stands at approximately $91.16 billion, with a trading volume of 4,282,861 shares.