Sherwin-Williams Reports Strong Q4 Performance Sherwin-Williams Reports Strong Q4 Performance

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By Ronald Tech


Sherwin-Williams Beats Revenue Estimates

Sherwin-Williams Company (NYSE: SHW) reported fourth-quarter revenue of $5.252 billion, surpassing the consensus of $5.220 billion. The sales witnessed a growth of 0.4% year over year, primarily driven by an increase in Paint Stores Group net sales volume.

Healthy Financials and Earnings

The Cleveland-based company also reported an adjusted EPS of $1.81, which exceeded the analyst consensus of $1.80. Quarterly gross profit saw a significant increase to $2.548 billion, compared with $2.233 billion in the same period last year. Furthermore, gross margin expanded to 48.5% from 42.7% in the year-ago period, reflecting strong financial health.

Robust Annual Performance

President and CEO Heidi G. Petz expressed her satisfaction with the full-year performance, citing that sales had grown to a record $23.05 billion, gross margin had expanded to 46.7%, and adjusted diluted net income per share rose by 18.6% to a record $10.35 per share.

Outlook and Share Performance

Looking ahead, Sherwin-Williams expects an adjusted EPS of $10.85-$11.35 for the fiscal year 2024, compared to the analyst consensus of $11.33. The company is cautiously optimistic, anticipating the first-quarter consolidated net sales to be up or down a low-single-digit percentage compared to the first quarter of 2023. However, despite the strong results, SHW shares were trading lower by 1.39% at $297.02 at the last check on Thursday.


See also  Unraveling the Triumph of Microsoft's Azure in the Hot Cloud WarThe Cloud King's Victorious Earnings Leap

Microsoft (MSFT) has done it again, dazzling investors with a stellar fourth-quarter fiscal 2024 performance that crushes all doubts. Emerging victorious, Microsoft reported earnings of $2.95 per share, a formidable 1.72% beat over expectations, showcasing a robust 9.7% improvement year over year. Revenues soared to $64.7 billion, marking a 15.2% annual surge, and exceeding the Zacks Consensus Estimate by 0.84%. Dive deeper, and you'll find earnings spike further; at constant currency, they gloriously hiked by 11% year over year.

Commercial Triumph Amidst Sky-High Expectations

Commercial bookings painted a picture of triumph, surging 17% year over year (and 19% at cc), stampeding past expectations. The growth was fuelled by an uptick in mega-contracts worth $10 million and $100 million each, revolving around both Azure and Microsoft 365, all while maintaining stellar performance in core annuity sales motions.

The Cloud Unleashed: Azure's Ascension

Microsoft's Cloud revenues manifested at $36.8 billion, a whopping 21% ascent year over year (up 22% at cc). Azure is akin to a formidable dragon on a gold hoard, lifting the company's overall performance and overshadowing previous expectations.

Segmental Showdown: Numbers That Tell a Tale

The Productivity & Business Processes segment emerged as a formidable force, with revenues soaring 11% (up 12% at cc) year over year, led by Office commercial products and cloud services that witnessed a 12% growth rate. Teams Premium saw a meteoric rise with a nearly 400% surge in seats, a testament to the allure of advanced features.

Meanwhile, the Intelligent Cloud segment carved its path to glory, contributing 44.1% to total revenues with a 19% annual boost. Azure and other cloud services revenue scaled a remarkable 29% growth, including an 8-point surge from AI services — demand that outstrips available capacity.

Lastly, the More Personal Computing segment showcased resilience, raking in a 14% year-over-year revenue increase to $15.9 billion. This rise included a net impact from the Activision acquisition, demonstrating Microsoft's strategic agility in adapting to evolving market trends.

Azure's Triumph at the Heart of the Storm

Azure has asserted its dominance in the cloud domain, spearheading Microsoft's remarkable saga of success. The company's fourth-quarter earnings soar high on the wings of Azure's triumph, painting a vivid picture of victory in the fiercely competitive cloud landscape. Investors are left in awe of Microsoft's relentless pursuit of excellence, as Azure reigns supreme in the clouds amidst a storm of competition, firmly establishing its reign as the Cloud King.

Microsoft's AI Triumph Unveiled in Fiscal Q4 Financials Microsoft's AI Triumph Unveiled in Fiscal Q4 Financials