Wrapping up Q2 earnings, we look at the numbers and key takeaways for the building materials stocks, including Sherwin-Williams (NYSE:SHW) and its peers.
Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of building materials companies.
The 9 building materials stocks we track reported a strong Q2.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.4% since the latest earnings results.
Sherwin-Williams (NYSE:SHW)
Widely known for its success in the paint industry, Sherwin-Williams (NYSE:SHW) is a manufacturer of paints, coatings, and related products.
Sherwin-Williams reported revenues of $6.79 billion, up 7.5% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was an exceptional quarter for the company with full-year EPS guidance beating analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
“Sherwin-Williams delivered strong second quarter results and continued to outperform the market despite ongoing global uncertainty and no meaningful improvement in demand,” said Chair, President and Chief Executive Officer, Heidi G. Petz.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $326.07.
Is now the time to buy Sherwin-Williams? Access our full analysis of the earnings results here, it’s free.
Best Q2: Carlisle (NYSE:CSL)
Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Carlisle reported revenues of $1.57 billion, up 8.3% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $341.42.
Read More: SHW) And The Rest Of The Building Materials Stocks
