What Should Investors Look Out for in Sherwin-Williams’s Newest Report?
Sherwin-Williams (NYSE:SHW) is a well-established painting manufacturer, and it is about to release its report for the fourth quarter.
Compared to other reports, this one has some hype for it. Overall, investors expect it to show some significant rebounds coming from its 2021 performance. However, it can be tricky to find this information upon release.
To help you on the matter, we’ll guide you through the contents you should be keeping an eye out for. That way, you can get the most juice out of this report.
Upon Release, Check What’s up With the Company’s Sales Trends
Even if the report is yet to be published fully, Sherwin-Williams has already shared some preliminary data. On it, we got to appreciate that the company’s sales numbers met expectations, and they rose by 6% and reached the likes of $4.76 billion.
Plus, this amounted to a 9% increase in terms of the whole year.
Nonetheless, the company did share some worries regarding recent trends. It didn’t go into full detail about it, but it did mention the following.
- Slow growth in the overall U.S. Market.
- Raw material shortages.
- Supply chain challenges
- Labor shortages.
Since these issues were brought up lightly, we have no clue how they could impact its forthcoming performance. Should we be worried about them too? Or are they just a nuisance?
Once you have access to this report, make sure to find any comments regarding these elements. Hopefully, we’ll get enough details to paint a clearer picture of Sherwin-Williams’s fiscal 2022.
Then, Look Out for the Company’s Expectations for Its Double-Digit Price Increases
Preliminary data also showed Sherwin-Williams’s interest in increasing the prices of its products. This way, the company can balance out the rising costs of the production process.
Apparently, the price tag for Sherwin-Williams’s products is to increase by 12%, but that was only implied. Likewise, if that happens to be true, we’ve got no information on why 12% was the chosen amount.
Once this report is released, you should look out for any information on the matter. Look out for the company’s reasoning and any sales predictions from after this increase is applied.
Ideally, this course of action should play a key role in the company’s rebound. But before we investors agree with this choice, the company has to earn our confidence.
Finally, Look Out for the Company’s Own Prospects for 2022
Of course, you should end your deep read of the report by looking out for the company’s prospects for the year.
Ideally, the performance for 2022 should be similar to that of 2021 (of about 8% – 9%). In addition to that, the company should also aim for growing volumes across all its business segments.
If these expectations are not met, make sure to find out why. If there’s a decent enough compromise, it might still serve for you to invest in the company, even if it means facing a few bumps in the road.
The release date for this report is currently set for January the 27th.