[Please refer to Appendix. Sherwin-Williams Co. (SHW) High-Quality Beat Positive for Shares RESEARCH UPDATE
|
|
- Mercy Harrington
- 5 years ago
- Views:
Transcription
1 April 21, 2016 Baird Equity Research Packaging & Coatings Sherwin-Williams Co. (SHW) High-Quality Beat Positive for Shares Strong start to 2016 led by core sales. We believe that the shares of Sherwin-Williams will react favorably to the high-quality 1Q16 earnings report, which was boosted by a near double-digit sales increase (SSS) in the Paint Stores Group segment. We reiterate our Outperform rating on the shares. Crushes 1Q. Sherwin-Williams reported diluted 1Q16 EPS of $1.81 well above consensus ($1.62) and versus $1.38 generated during the 1Q15 quarter. Paint Stores Group driven upside. SSS for the Paint Stores Group segment (PSG) of +9.4% was well above our forecast and partly reflective of easier comparisons on a YOY basis amid continued strength in U.S. construction fundamentals. Consumer also strong. Relative to our model, 1Q sales in the Paint Stores Group was the big outlier on the plus side, with Consumer also tracking higher (HGTV benefit), while Global Finishes was in-line (Latin America weaker). Commensurate operating leverage. Accordingly, operating income for PSG substantially outperformed, with Global Finishes also above forecast (lower raw material costs / productivity benefit), offset by a much higher Corporate Expense line (lower tax rate added $0.08). Solid outlook. As for the outlook, 2Q16 EPS guidance of $ $4.15 easily brackets consensus ($4.11), with sales expected to increase low-to-mid-sd. For FY16, EPS guidance was raised to $ $12.70 (consensus at $12.42), with low-sd sales guidance unchanged. Positive for shares. Net:net, given the high-quality 1Q earnings beat, we believe that the shares will react favorably to the 1Q earnings report. Key questions include: 1) why FY16 sales guidance was left unchanged even with 1H16 tracking towards the mid-sd level, 2) clarity behind the enormous FY16 costs related to the pending Valspar acquisition ($185 - $205 million), 3) competitive dynamics in the N.A. Paint market, and 4) guidance on share buybacks for FY16 (zero purchased during 1Q). RESEARCH UPDATE 1-Year Price Chart M-15 J-15 J-15 Stock Data A-15 S O-15 Rating: Outperform Suitability: Average Risk Price Target: $300 Price (4/21/16): $ Market Cap (mil): $28,052 Shares Out (mil): 93.5 Average Daily Vol (mil): 0.94 Dividend Yield: 0.5% '16E EV:EBITDA: 14.6x '16E FCF Yield: 4.1% Estimates N-15 D-15 J-16 F-16 M-16 A FY Dec 2015A 2016E 2017E Q A 1.81 A Q A 4.04 E Q A 4.33 E Q A 2.44 E Fiscal EPS A E E Fiscal P/E 26.9x 24.2x 21.7x Chart/Table Sources: FactSet and Baird Data. Price chart reflects most recent closing price. EPS (Net): 1Q16 has been updated. FY16, FY17, and price target are pending further review. EPS (Net): Quarterly EPS may not sum to FY EPS due to rounding. Sherwin-Williams is a global leader in the manufacture, development, distribution, and sale of coatings and related products to professional, commercial, and retail customers. [Please refer to Appendix - Important Disclosures and Analyst Certification] Ghansham Panjabi, Ph.D. gpanjabi@rwbaird.com Mehul M. Dalia mdalia@rwbaird.com Matthew T. Krueger mtkrueger@rwbaird.com
2 Details Quarterly Results Comparison - SHW (actual) vs. RWB Estimates Actual vs. Estimate Year/Year Change Reported 1Q16 1Q16E $ Diff %/bps Diff EPS Impact 1Q15 % Change Net Revenue: Paint Stores Group 1, , % - 1, % Consumer Group % % Global Finishes Group % % Latin America Coatings Group (4.5) -3.4% % Administrative (0.0) -1.8% % Net Revenue 2, , % - 2, % Operating Income: Paint Stores Group % $ % Consumer Group % $ % Global Finishes Group % $ % Latin America Coatings Group (0.9) 3.9 (4.8) % ($0.04) % Administrative (100.6) (80.0) (20.6) 25.8% ($0.16) (74.8) -34.5% Operating Income % $ % Operating Margins: Paint Stores Group 15.7% 14.0% % 360 Consumer Group 16.9% 17.0% % 120 Global Finishes Group 10.7% 8.5% % 240 Latin America Coatings Group -0.7% 3.0% - (380) - 5.7% (650) Operating Margins 10.3% 9.6% % 190 Interest Expense (net) % ($0.05) % Pretax Income % $ % Taxes % % Tax Rate 29.0% 32.0% % $ % -9.4% Net Income to Restricted Shares - (0.5) % $0.01 (0.2) - Net Income to Common Shares % $ % Diluted Shares Outstanding % ($0.02) % Diluted EPS $1.81 $1.59 $ % $0.23 $ % Sources: Company filings and estimates * EPS impact may be off by +/- $0.01 due to rounding. Investment Thesis Top-three global coatings player and dominant N.A. franchise. In our opinion, Sherwin-Williams has emerged as a strong No. 3 in the attractive global coatings niche, with outsized exposure toward the N.A. architectural coatings market (~45% share). Products include coatings used in construction (paints and sealants) and product manufacturing (autos/wood furniture), with N.A. architectural coatings encompassing ~70% of the sales portfolio differentiating SHW from its more global peers (75% sales from N.A.). 70% sales base housing biased. In following, Sherwin-Williams is clearly exposed to U.S. housing fundamentals, noting that architectural coatings usage in the U.S. is down roughly 15% since the 2005 peak. Regardless, built on considerable brand equity and a differentiated controlled distribution model (70% of sales through retail stores), SHW has consistently gained share across N.A., while exhibiting pricing power via six price increases since 2010 (to offset rapid propylene and TiO2 increases). Near-term outlook attractive. Regardless, we believe that SHW fundamentals are attractive near term, with improving end-market dynamics boosted by a stable to declining raw material cost environment. 2
3 Valuation. Our $300 price target is based on 14.5x '16E EV:EBITDA, above the company's historical average of 8.5x LTM EV:EBITDA, which we believe is justified given the Sherwin s strong brand equity, significant free cash flow generation, pricing power, and cash flow allocation track record. Risks & Caveats Outsized exposure to U.S. architectural coatings. Continued weakness in the U.S. housing market and U.S. architectural coatings market (~70% of Sherwin's sales) is a major risk. Volatile raw material costs. Though raw material inflation is weakening, spikes in propylene and TiO2 costs (both major cost inputs) could hurt Sherwin's profitability. Significant operating leases. At current, Sherwin-Williams has ~$700 million in operating leases (NPV), as 93% of its stores are leased, which we believe could become a risk if leasing terms become unfavorable in the future. Lead-based paint litigation. Sherwin-Williams is an easy target for lead-based paint related litigation given its dominance in the U.S. architectural coatings market, its significant FCF generation, and the relatively low number of existing prior lead-based paint producers left in business at current (most have gone bankrupt). Environmental liabilities. Sherwin-Williams mentions environmental litigation as an ongoing concern in their filings, and accrues potential liabilities from adverse rulings when it is increasingly probable that a liability will materialize and an amount can be determined. Company Description Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers. The company manufactures products under well-known brands such as Sherwin-Williams, Dutch Boy, Krylon, Minwax, Thompson s WaterSeal, and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams branded products are sold exclusively through a chain of more than 4,000 company-operated stores and facilities, while the company s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Global Finishes Group distributes a wide range of products in more than 109 countries around the world. 3
4 Appendix - Important Disclosures and Analyst Certification Rating and Price Target History for: Sherwin-Williams Co. (SHW) as of /24/13 O:$205 03/19/14 O:$225 10/02/14 O:$240 12/11/14 O:$260 01/14/15 O:$ Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q Created by BlueMatrix 1 Incorporated makes a market in the securities of SHW. Incorporated and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or companies mentioned in this report within the next three months. Incorporated may not be licensed to execute transactions in all foreign listed securities directly. Transactions in foreign listed securities may be prohibited for residents of the United States. Please contact a Baird representative for more information. Investment Ratings: Outperform (O) - Expected to outperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Neutral (N) - Expected to perform in line with the broader U.S. equity market over the next 12 months. Underperform (U) - Expected to underperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Risk Ratings: L - Lower Risk - Higher-quality companies for investors seeking capital appreciation or income with an emphasis on safety. Company characteristics may include: stable earnings, conservative balance sheets, and an established history of revenue and earnings. A - Average Risk - Growth situations for investors seeking capital appreciation with an emphasis on safety. Company characteristics may include: moderate volatility, modest balance-sheet leverage, and stable patterns of revenue and earnings. H - Higher Risk - Higher-growth situations appropriate for investors seeking capital appreciation with the acceptance of risk. Company characteristics may include: higher balance-sheet leverage, dynamic business environments, and higher levels of earnings and price volatility. S - Speculative Risk - High-growth situations appropriate only for investors willing to accept a high degree of volatility and risk. Company characteristics may include: unpredictable earnings, small capitalization, aggressive growth strategies, rapidly changing market dynamics, high leverage, extreme price volatility and unknown competitive challenges. Valuation, Ratings and Risks. The recommendation and price target contained within this report are based on a time horizon of 12 months but there is no guarantee the objective will be achieved within the specified time horizon. Price targets are determined by a subjective review of fundamental and/or quantitative factors of the issuer, its industry, and the security type. A variety of methods may be used to determine the value of a security including, but not limited to, discounted cash flow, earnings multiples, peer group comparisons, and sum of the parts. Overall market risk, interest rate risk, and general economic risks impact all securities. Specific information regarding the price target and recommendation is provided in the text of our most recent research report. Distribution of Investment Ratings. As of March 31, 2016, Baird U.S. Equity Research covered 710 companies, with 51% rated Outperform/Buy, 48% rated Neutral/Hold and 1% rated Underperform/Sell. Within these rating categories, 14% of Outperform/Buy-rated and 5% of Neutral/Hold-rated companies have compensated Baird for investment banking services in the past 12 months and/or Baird managed or co-managed a public offering of securities for these companies in the past 12 months. Analyst Compensation. Analyst compensation is based on: 1) the correlation between the analyst's recommendations and stock price performance; 2) ratings and direct feedback from our investing clients, our institutional and retail sales force (as applicable) and from independent rating services; 3) the analyst's productivity, including the quality of the analyst's research and the analyst's contribution to the growth and development of our overall research effort and 4) compliance with all of Robert W. Baird s internal policies and procedures. This compensation criteria and actual compensation is reviewed and approved on an annual basis by Baird's Research Oversight Committee. Analyst compensation is derived from all revenue sources of the firm, including revenues from investment banking. Baird does not compensate research analysts based on specific investment banking transactions. A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at 4
5 You can also call or write: Incorporated, Equity Research, 777 E. Wisconsin Avenue, Milwaukee, WI Analyst Certification. The senior research analyst(s) certifies that the views expressed in this research report and/or financial model accurately reflect such senior analyst's personal views about the subject securities or issuers and that no part of his or her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in the research report. Disclaimers Baird prohibits analysts from owning stock in companies they cover. This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are unmanaged common stock indices used to measure and report performance of various sectors of the stock market; direct investment in indices is not available. Baird is exempt from the requirement to hold an Australian financial services license. Baird is regulated by the United States Securities and Exchange Commission, FINRA, and various other self-regulatory organizations and those laws and regulations may differ from Australian laws. This report has been prepared in accordance with the laws and regulations governing United States broker-dealers and not Australian laws. Copyright 2016 Incorporated Other Disclosures The information and rating included in this report represent the Analyst s long-term (12 month) view as described above. The research analyst(s) named in this report may at times, discuss, at the request of our clients, including salespersons and traders, or may have discussed in this report, certain trading strategies based on catalysts or events that may have a near-term impact on the market price of the equity securities discussed in this report. These trading strategies may differ from the analysts published price target or rating for such securities. Any such trading strategies are distinct from and do not affect the analysts fundamental long-term (12 month) rating for such securities, as described above. In addition, Incorporated and/or its affiliates (Baird) may provide to certain clients additional or research supplemental products or services, such as outlooks, commentaries and other detailed analyses, which focus on covered stocks, companies, industries or sectors. Not all clients who receive our standard company-specific research reports are eligible to receive these additional or supplemental products or services. Baird determines in its sole discretion the clients who will receive additional or supplemental products or services, in light of various factors including the size and scope of the client relationships. These additional or supplemental products or services may feature different analytical or research techniques and information than are contained in Baird s standard research reports. Any ratings and recommendations contained in such additional or research supplemental products are consistent with the Analyst s long-term ratings and recommendations contained in more broadly disseminated standard research reports. United Kingdom ( UK ) disclosure requirements for the purpose of distributing this research into the UK and other countries for which Robert W. Baird Limited ( RWBL ) holds a MiFID passport. This material is distributed in the UK and the European Economic Area ( EEA ) by RWBL, which has an office at Finsbury Circus House, 15 Finsbury Circus, London EC2M 7EB and is authorized and regulated by the Financial Conduct Authority ( FCA ). For the purposes of the FCA requirements, this investment research report is classified as investment research and is objective. This material is only directed at and is only made available to persons in the EEA who would satisfy the criteria of being "Professional" investors under MiFID and to persons in the UK falling within articles 19, 38, 47, and 49 of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (all such persons being referred to as relevant persons ). Accordingly, this document is intended only for persons regarded as investment professionals (or equivalent) and is not to be distributed to or passed onto any other person (such as persons who would be classified as Retail clients under MiFID). Incorporated and RWBL have in place organizational and administrative arrangements for the disclosure and avoidance of conflicts of interest with respect to research recommendations. This material is not intended for persons in jurisdictions where the distribution or publication of this research report is not permitted under the applicable laws or regulations of such jurisdiction. Investment involves risk. The price of securities may fluctuate and past performance is not indicative of future results. Any recommendation contained in the research report does not have regard to the specific investment objectives, financial situation and the particular needs of any individuals. You are advised to exercise caution in relation to the research report. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. RWBL is exempt from the requirement to hold an Australian financial services license. RWBL is regulated by the FCA under UK laws, which may differ from Australian laws. This document has been prepared in accordance with FCA requirements and not Australian laws. Dividend Yield. As used in this report, the term dividend yield refers, on a percentage basis, to the historical distributions made by the issuer relative to its current market price. Such distributions are not guaranteed, may be modified at the issuer s discretion, may exceed operating cash flow, subsidized by borrowed funds or include a return of investment principal. Ask the analyst a question Click here to unsubscribe 5
[Please refer to Appendix. Sherwin-Williams Co. (SHW) Clean 4Q Beat Solid Guidance VAL on Track RESEARCH UPDATE
January 26, 2017 Baird Equity Research Packaging & Coatings Sherwin-Williams Co. (SHW) Clean 4Q Beat Solid Guidance VAL on Track Reiterate Outperform rating Top Coatings Pick. We believe that the shares
More information[Please refer to Appendix. Wells Fargo & Company (WFC) Q2 Initial Thoughts: Revenue Trends Modestly Below Expectations RESEARCH UPDATE
July 15, 2016 Baird Equity Research US Banks Wells Fargo & Company (WFC) Q2 Initial Thoughts: Revenue Trends Modestly Below Expectations WFC reported Q216 EPS of $1.01 (Baird $1.02, consensus $1.01). Non-core
More information[Please refer to Appendix. Regions Financial Corp. (RF) Q3 Initial Thoughts: Mixed Quarter with Lower Provisioning but Weaker NII RESEARCH UPDATE
October 18, 2016 Baird Equity Research US Banks Regions Financial Corp. (RF) Q3 Initial Thoughts: Mixed Quarter with Lower Provisioning but Weaker NII RF reported Q316 EPS of $0.24 (vs. Baird $0.22). Non-core
More information[Please refer to Appendix. Sherwin-Williams Co. (SHW) Catalysts on the Horizon Substantial Upside; Top Coatings Pick ESTIMATE CHANGE
Baird Equity Research Packaging & Coatings Sherwin-Williams Co. (SHW) Catalysts on the Horizon Substantial Upside; Top Coatings Pick Reiterate Outperform rating. A combination of strong end-market demand,
More information[Please refer to Appendix. PPG Industries, Inc. (PPG) Stable End-Markets; Volume Improvement Likely Reiterate Outperform. Rating: RAISING PRICE TARGET
April 22, 2016 Baird Equity Research Packaging & Coatings PPG Industries, Inc. (PPG) Stable End-Markets; Volume Improvement Likely Reiterate Outperform Rating Price target raised to $125. In our opinion,
More information[Please refer to Appendix. C.H. Robinson Worldwide, Inc. (CHRW) Complementary Global Forwarding Acquisition Announced RESEARCH UPDATE
September 1, 2016 Baird Equity Research Transportation/Logistics C.H. Robinson Worldwide, Inc. (CHRW) Complementary Global Forwarding Acquisition Announced Maintain Neutral rating. After market close,
More informationFastener Distributor Index April 2017
Fastener Distributor Index April 2017 Written by R.W. Baird analyst David J. Manthey, CFA 5/5/17 Key Takeaway: The seasonally-adjusted FDI for April 2017 was 50.2, remaining in expansionary territory but
More informationFastener Distributor Index March 2017
Fastener Distributor Index March 2017 Written by R.W. Baird analyst David J. Manthey, CFA 4/5/17 Key Takeaway: The seasonally adjusted FDI for March 2017 was 60.0, increasing from February s 57.0 reading
More information[Please refer to Appendix. Verizon Communications, Inc. (VZ) Competition Weighing on Revenue, but Cash Flow Solid RAISING PRICE TARGET
July 26, 2016 Baird Equity Research Connected Technology Verizon Communications, Inc. (VZ) Competition Weighing on Revenue, but Cash Flow Solid Maintain Neutral rating. This morning, Verizon reported mixed
More informationSherwin-Williams Co. (SHW) Valspar Adds a New Dimension Significant Accretion Positive for Shares
March 21, 2016 Baird Equity Research Packaging & Coatings Sherwin-Williams Co. (SHW) Valspar Adds a New Dimension Significant Accretion Positive for Shares Reiterate Outperform rating. We believe that
More information[Please refer to Appendix. Comcast Corporation (CMCSA) Solid Q3, Though Competition Concerns Weighing on Stock ESTIMATE CHANGE
October 27, 2016 Baird Equity Research Connected Technology Comcast Corporation (CMCSA) Solid Q3, Though Competition Concerns Weighing on Stock X1 a differentiator. Yesterday morning Comcast reported solid
More informationFastener Distributor Index December 2017
Fastener Distributor Index December 2017 Written by R.W. Baird analyst David J. Manthey, CFA 1/9/18 Key Takeaway: The seasonally adjusted FDI for December 2017 was 57.6 up modestly vs. November s 56.9
More information[Please refer to Appendix. The Finish Line, Inc. (FINL) 2Q Preview ESTIMATE CHANGE. - Important Disclosures and Analyst Certification] Active/Outdoor
September 24, 2013 Baird Equity Research Active/Outdoor The Finish Line, Inc. (FINL) 2Q Preview Maintaining our Neutral rating. Athletic footwear retail trends improved over the course of FINL s 2Q, which
More information[Please refer to Appendix. Johnson Controls, Inc. (JCI) Solid FQ3 Beat; FQ4 Outlook in Line with Expectations RESEARCH UPDATE
July 21, 2016 Baird Equity Research Global Automotive Johnson Controls, Inc. (JCI) Solid FQ3 Beat; FQ4 Outlook in Line with Expectations Reiterate Outperform we remain buyers. FQ3 EPS of $1.07 vs. $0.91
More informationThe Sherwin-Williams Company and Subsidiaries Statements of Consolidated Income (Unaudited)
The Sherwin-Williams Company Reports 2015 Third Quarter and First Nine Months Financial Results Consolidated net income as a percentage to sales of 11.9% in the quarter was an all time high Diluted net
More informationBreaking News: Stock Market Update February 5, 2018
Baird Market and Investment Strategy Breaking News: Stock Market Update February 5, 2018 Please refer to Appendix Important Disclosures. Stock Market Update Stocks Under Pressure As Indexes Give Up 2018
More informationThe Sherwin-Williams Company Reports 2016 Second Quarter Financial Results
The Sherwin-Williams Company Reports 2016 Second Quarter Financial Results Second quarter consolidated net sales increased 2.8% to a record $3.22 billion in the quarter and increased 3.8% to $5.79 billion
More informationMedia Contact: Mike Conway Director, Corporate Communications Sherwin-Williams Direct: Pager:
The Sherwin-Williams Company Reports 2012 Second Quarter and First Six Months Financial Results Consolidated net sales increased 9.3% to a record $2.57 billion in the quarter and 11.9% to a record $4.71
More informationCapital Markets View. Heike Doerr. Energy Research October 8, Senior Research Associate.
Energy Research October 8, 2012 Capital Markets View Heike Doerr Senior Research Associate hdoerr@rwbaird.com 215.553.7816 Please refer to Appendix - Important Disclosures and Analyst Certification. Regulatory
More informationThe Sherwin-Williams Company Reports 2015 Second Quarter and First Six Months Financial Results
The Sherwin-Williams Company Reports 2015 Second Quarter and First Six Months Financial Results Consolidated net sales increased 2.9% to a record $3.13 billion in the quarter and increased 3.2% to a record
More informationThe Sherwin-Williams Company Reports 2018 First Quarter Financial Results
The Sherwin-Williams Company Reports 2018 First Quarter Financial Results Consolidated net sales increased 43.6% in the quarter to a record $3.97 billion; Valspar sales increased consolidated net sales
More informationEPS 20.9% $8.78 $.22 $.18 $.13 EPS
The Sherwin-Williams Company Reports 2014 Year-end Financial Results Consolidated net sales for the year increased 9.3% to a record $11.13 billion Full year diluted net income per common share increased
More informationThe Sherwin-Williams Company Reports 2017 Year-end and Fourth Quarter Financial Results
The Sherwin-Williams Company Reports 2017 Year-end and Fourth Quarter Financial Results Consolidated net sales for the year increased 26.4% to a record $14.98 billion and increased 43.0% in the quarter
More information2018 Economic & Stock Market Outlook: Clouds Could Test Investor Resolve
2018 Economic & Stock Market Outlook: Clouds Could Test Investor Resolve Supplemental Chart Pack December 13, 2017 Bruce Bittles Chief Investment Strategist (941) 906-2830 bbittles@rwbaird.com William
More informationwill be available at beginning approximately two hours after the call ends and will be available until August 8, 2013 at 5:00 p.m. ET.
The Sherwin-Williams Company Reports 2013 Second Quarter and First Six Months Financial Results Consolidated net sales increased 5.5% to a record $2.71 billion in the quarter and increased 3.6% to a record
More information[Please refer to Appendix. CMS Energy (CMS) EPS Up 43% Y/Y, Highlighting Successful Growth Strategy ESTIMATE CHANGE
October 30, 2015 Baird Equity Research Utilities CMS Energy (CMS) EPS Up 43% Y/Y, Highlighting Successful Growth Strategy Substantially improved EPS performance underscores unique business strategy; we
More informationThe Sherwin-Williams Company Reports 2013 Year-end Financial Results Consolidated net sales for the year increased 6.8% to a record $10.
The Sherwin-Williams Company Reports 2013 Year-end Financial Results Consolidated net sales for the year increased 6.8% to a record $10.19 billion Full year diluted net income per common share increased
More informationThe Sherwin-Williams Company Reports 2017 Third Quarter Financial Results
The Sherwin-Williams Company Reports 2017 Third Quarter Financial Results Consolidated net sales increased 37.4% in the quarter to a record $4.51 billion, and increased 21.3% in the nine months to a record
More informationMedia Contact: Mike Conway Director, Corporate Communications Sherwin-Williams Direct: Pager:
The Sherwin-Williams Company Reports 2011 Year-end Financial Results Consolidated net sales for the year increased 12.7% to a record $8.77 billion Diluted net income per common share was $4.14 per share
More informationMRAA/Baird Marine Retailer Pulse Report October 2015
November 10, 2015 MRAA/Baird October 2015 Craig Kennison, CFA ckennison@rwbaird.com 414.765.3870 Matt Gruhn President, MRAA 763.333.2421 PLEASE REFER TO APPENDIX IMPORTANT DISCLOSURES AND ANALYST CERTIFICATION
More informationCummins Inc. Nice Second-Quarter EPS Beat but Not Immune to Second-Half Slowdown. Equity Research Global Industrial Infrastructure Capital Goods
Equity Research Global Industrial Infrastructure Capital Goods August 02, 2016 Cummins Inc. Nice Second-Quarter EPS Beat but Not Immune to Second-Half Slowdown Summary/Quick take. Cummins reported a solid
More informationUncertainty Now; Opportunity Later: 2015 Economic & Stock Market Outlook, Mid-Year Update
Uncertainty Now; Opportunity Later: 2015 Economic & Stock Market Outlook, Mid-Year Update June 25, 2015 by Bruce Bittles, William Delwiche of Robert W. Baird & Co. The weight of the evidence has slipped
More informationMarket Commentary July 19, 2018
Baird Market and Investment Strategy Market Commentary July 19, 2018 Please refer to Appendix Important Disclosures. Equity Outflows Fuel Stock Gains Despite Breadth Concerns Key Takeaways: Indexes have
More informationWeight of the Evidence = +2 Mildly Bullish
Baird Market & Investment Strategy 2015 Economic & Stock Market Outlook Supplemental Chart Pack December 12, 2014 Please refer to Appendix Important Disclosures. The following charts and comments are meant
More informationAutoZone, Inc. EQUITY RESEARCH QUARTERLY UPDATE OUTPERFORM. Quick Read: Sales a Bit Soft, But Results Solid. September 22, 2016
EQUITY RESEARCH QUARTERLY UPDATE September 22, 2016 Stock Rating: OUTPERFORM 12-18 mo. Price Target $900.00 AZO - NYSE $751.45 3-5 Yr. EPS Gr. Rate 14% 52-Wk Range $819.54-$681.01 Shares Outstanding 30.8M
More informationRobert W. Baird Equity Research Hotel Update: C-Corps and REITs
Real Estate Research October 3, 2012 Robert W. Baird Equity Research Hotel Update: C-Corps and REITs David Loeb Senior Real Estate Research Analyst Managing Director dloeb@rwbaird.com 414-765-7063 Jonathan
More informationInvestment Strategy Outlook
Baird Market & Investment Strategy Investment Strategy Outlook October 19, 2017 Please refer to Appendix Important Disclosures. Weight of Evidence Offers Bullish Message Outlook Summary Highlights: Central
More informationO'Reilly Automotive, Inc. Quick Read: Weather Likely Weighed Upon Sales a Bit
EQUITY RESEARCH QUARTERLY UPDATE July 27, 2016 Stock Rating: OUTPERFORM 12-18 mo. Price Target $300.00 ORLY - NASDAQ $277.51 3-5 Yr. EPS Gr. Rate 18% 52-Wk Range $284.66-$225.12 Shares Outstanding 99.4M
More information2014 Economic & Stock Market Outlook Mid-Year Chart Pack Update June 12, 2014
Baird Market & Investment Strategy 14 Economic & Stock Market Outlook Mid-Year Chart Pack Update June, 14 Please refer to Appendix Important Disclosures. The following charts and comments are meant to
More informationThe Valspar Corporation
March 04, 2015 The Valspar Corporation Current Recommendation Prior Recommendation Outperform Date of Last Change 07/05/2012 Current Price (03/03/15) $87.26 Target Price $92.00 NEUTRAL (VAL-NYSE) SUMMARY
More information[Please refer to Appendix. PetSmart, Inc. (PETM) 3Q Preview: Expect In-Line Results - Survey Work Supportive of MSD Comps RESEARCH UPDATE
November 12, 2012 Baird Equity Research Hardline & Broadline Retail PetSmart, Inc. (PETM) 3Q Preview: Expect In-Line Results - Survey Work Supportive of MSD Comps Thoughts on 3Q. Maintaining comp and EPS
More informationAnalyst's Notes. Argus Recommendations
Report created Jan 17, 2018 Page 1 OF 5 Citigroup is one of world's largest banks, with global consumer banking, corporate banking, and investment banking operations. Of the largest U.S. banks, Citigroup
More informationAnalyst's Notes. Argus Recommendations
Report created Jan 24, 2018 Page 1 OF 5 General Electric is one of the largest publicly traded companies in the world and is classified as a diversified industrials business. The stock is a component of
More informationAnta Sports (2020 HK)
Equity Research Consumer Discretionary Anta Sports (2020 HK) Hold (downgraded) Target price: HK$22.80 Albert Yip, CFA SFC CE No. ADT599 albertyip@gfgroup.com.hk +852 3719 1010 GF Securities (Hong Kong)
More informationThe Sherwin-Williams Company (NYSE: SHW)
Apr 25, 2016 The Sherwin-Williams Company (NYSE: SHW) $299.10 USD ( As of 04/22/16 ) Zacks Rank 3-Hold Style:Value: Growth: Momentum: VGM: Data Overview 52 Week High-Low $300.02 - $218.94 20 Day Average
More informationInvestment Strategy Outlook May 10, 2017
Baird Market & Investment Strategy Investment Strategy Outlook May 10, 2017 Please refer to Appendix Important Disclosures. Fed Looking Past First-Quarter Disappointments Outlook Summary Highlights: Surge
More informationAAON, Inc. (AAON) NEUTRAL Price Target: $35 Price: $ Sidoti & Company, LLC
September 15, 2017 Morning Meeting Note Company Update AAON, Inc. (AAON) Equity Research We Maintain Our Outlook For Robust Growth For AAON, Following A Peer s Positive Commentary Earlier This Week; Maintain
More informationThe Sherwin-Williams Company (NYSE: SHW)
Apr 27, 2016 The Sherwin-Williams Company (NYSE: SHW) $300.12 USD ( As of 04/26/16 ) Zacks Rank 2-Buy Style:Value: Growth: Momentum: VGM: Data Overview Target Price $336.00 52 Week High-Low $300.12 - $218.94
More informationSUMMARY. Risk Level *
February 26, 2015 The Home Depot, Inc. Current Recommendation Earnings Update: Home Depot Tops Q4 Earnings & Revenues, Guides FY15 SUMMARY DATA NEUTRAL Prior Recommendation Underperform Date of Last Change
More informationSidoti & Company, LLC Member FINRA & SIPC Required disclosures appear in the Appendix.
Member FINRA & SIPC Required disclosures appear in the Appendix. 122 East 42 nd Street New York, NY 10168 (212) 297-0001 (212) 297-9166 www.sidoti.com AAON, Inc. (AAON-$26.55) Morning Meeting Note NEUTRAL
More informationAlphabet Inc. GOOGL - NASDAQ Neutral -1
COMPANY UPDATE / ESTIMATE CHANGE / TARGET CHANGE Key Metrics GOOGL - NASDAQ - as of 10/30/17 $1,033.13 Price Target $1,100 52-Week Range $743.59 - $1,063.62 Diluted Shares Outstanding (mil) 703.5 Market
More informationAlphabet Inc. GOOGL - NASDAQ Neutral -1
COMPANY UPDATE / TARGET CHANGE ESTIMATE CHANGE Key Metrics GOOGL - NASDAQ - as of 5/1/17 $932.82 Price Target $1,000.00 52-Week Range $672.66 - $935.82 Diluted Shares Outstanding (mil) 702.0 Market Cap.
More informationUS Banks Q2 Preview: Results Overshadowed by Deteriorating Outlook; Downgrading BBT
July 11, 2016 Baird Equity Research Financial Institutions US Banks Q2 Preview: Results Overshadowed by Deteriorating Outlook; Downgrading BBT We think the banks will trade in line/modestly underperform
More informationDarden Restaurants, Inc.
Darden Restaurants, Inc. DRI: Reports Solid Performance; Expectations Were Pretty High Despite Evidence Segment Is Slowing Our View: We reiterate our OW rating following shares coming under pressure because
More informationSidoti & Company, LLC Member FINRA & SIPC Required disclosures appear in the Appendix.
Member FINRA & SIPC Required disclosures appear in the Appendix. 122 East 42 nd Street New York, NY 10168 (212) 297-0001 (212) 297-9166 www.sidoti.com AAON, Inc. (AAON-$27.84) Morning Meeting Note NEUTRAL
More informationAvery Dennison Corporation
March 20, 2015 Avery Dennison Corporation Current Recommendation NEUTRAL Prior Recommendation Outperform Date of Last Change 09/26/2013 Current Price (03/19/15) $53.00 Target Price $56.00 SUMMARY DATA
More informationEquity Research. Cummins Inc. CMI: Headwinds Continue Adjusting Estimates & Maintain Market Perform. Market Perform.
August 2, 2016 Equity Research CMI: Headwinds Continue Adjusting Estimates & Maintain Market Perform Summary: CMI continued to encounter difficult end market conditions that deteriorated through Q2 16
More informationAAON, Inc. (AAON) NEUTRAL Price Target: $33 Price: $ Sidoti & Company, LLC
December 13, 2018 Morning Meeting Note Company Update AAON, Inc. (AAON) Equity Research In Our View, AAON s Outlook For 2019 Is Positive Based On Backlog, Order Trend And Price/Cost; However, We Are Cautious
More informationEquity Research. Beacon Roofing Supply, Inc. (BECN-NSDQ) OUTLOOK SUMMARY DATA ZACKS ESTIMATES. Hold Prior Recommendation. Current Recommendation
Equity Research July 7, 2006 Mario Ricchio www.zacks.com 155 North Wacker Drive Chicago, IL 60606 Beacon Roofing Supply, Inc. (BECN-NSDQ) Current Recommendation Hold Prior Recommendation Buy Date of Last
More informationSidoti & Company, LLC Member FINRA & SIPC Required disclosures appear in the Appendix.
Member FINRA & SIPC Required disclosures appear in the Appendix. 122 East 42 nd Street New York, NY 10168 (212) 297-0001 (212) 297-9166 www.sidoti.com AAON, Inc. (AAON-$23.39) Morning Meeting Note NEUTRAL
More informationProceed With Caution: Higher Probability for Normalized Market Returns Ahead
September 2015 Matt Neska, CFA, Domestic Equity Specialist Proceed With Caution: Higher Probability for Normalized Market Returns Ahead The current bull market in U.S. equities is entering its seventh
More informationAnalyst's Notes. Argus Recommendations
Report created Jan 12, 2018 Page 1 OF 5 JPMorgan Chase is one of world's largest diversified banking firms. The company operates a leading global corporate and investment bank and is the second-largest
More informationAnta Sports (2020 HK)
Equity Research Consumer Discretionary Anta Sports (2020 HK) Buy (maintained) Target price: HK$18.50 Strong FY14 results; order book momentum maintained FY14 results above expectation Net profit jumped
More informationEquity Volatility and Covered Call Writing
December 2017 Equity Volatility and Covered Call Writing Executive Summary Amid uncertainty in the markets and investor desire for lower volatility, investors may want to consider a covered call strategy
More informationWashington & The Investment Landscape Daniel Clifton February 2019 Macro Research
Washington & The Investment Landscape Daniel Clifton February 2019 Macro Research Investment Strategy Economics Policy Research Quantitative Research Technical Research Fixed Income Research Industry Surveys
More informationRockwell Automation Inc.
March 16, 2015 Rockwell Automation Inc. Current Recommendation SUMMARY DATA NEUTRAL Prior Recommendation Outperform Date of Last Change 07/31/2011 Current Price (03/13/15) $111.52 Target Price $117.00
More informationAnalyst's Notes. Argus Recommendations
Report created Jul 23, 2015 Page 1 OF 5 Boeing manufactures commercial jetliners and military aircraft as well as rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles, and
More informationEQUITY RESEARCH. Royal Dutch Shell B, Attractively Valued - Buy. Share Price: 2,202p Target Price: 2,500p (+14%) 21 September 2017
Royal Dutch Shell B, Attractively Valued - Buy Share Price: 2,202p Target Price: 2,500p (+14%) Royal Dutch Shell B (RDSB.L) recently presented its view of global, long term energy supply and demand. Importantly,
More informationLifeVantage Corp. NasdaqCM: LFVN
LifeVantage Corp. NasdaqCM: LFVN New Products and Valuation Outweigh issues in Japan, reiterate Strong Buy LifeVantage Corp (LFVN) focuses on selling healthy living products through direct selling. They
More informationEquity Research. Apple Inc. AAPL: T-Mobile And Sprint Sees Strong iphone 7 Preorders. Market Perform. September 13, 2016
September 13, 2016 Equity Research Apple Inc. AAPL: T-Mobile And Sprint Sees Strong iphone 7 Preorders T-Mobile and Sprint announces strong iphone 7 Pre-orders. T-Mobile announced iphone 7 and 7 Plus pre-orders
More informationActive vs. Passive Money Management
Active vs. Passive Money Management Exploring the costs and benefits of two alternative investment approaches By Baird s Advisory Services Research Synopsis Proponents of active and passive investment
More informationDollarama Inc. Q4 F2017 Results. A straight-forward beat and other notable business updates HIGHLIGHTS. The NBF Daily Bulletin.
DOL (T) $110.88 Stock Rating: Outperform (Unchanged) Target: $122.00 (Was $113.00) Risk Rating: Below Average (Unchanged) Est. Total Return: 10.4% Stock Data: 52-week High-Low (Canada) Bloomberg $104.94
More informationChow Tai Fook (1929 HK)
Equity Research Consumer Discretionary Hold (maintained) Target price: HK$8.50 Albert Yip, CFA SFC CE No. ADT599 albertyip@gfgroup.com.hk +852 3719 1010 GF Securities (Hong Kong) Brokerage Limited 29-30/F,
More information[Please refer to Appendix. Southwestern Energy Company (SWN) 2012 Production/Capex Guidance Maintained; Brown Dense Work Continues ESTIMATE CHANGE
May 7, 2012 Baird Equity Research Exploration & Production Southwestern Energy Company (SWN) 2012 Production/Capex Guidance Maintained; Brown Dense Work Continues 2012 production/capex guidance maintained;
More informationAnalyst's Notes. Argus Recommendations
Report created Nov 22, 2017 Page 1 OF 5 Based in London, BP is one of the world's five super majors. BP's operations are fully integrated, consisting of upstream, transportation, trading, refining, petrochemicals,
More informationJackpotJoy plc. A transformational year. Revenue and EBITDA slightly ahead of estimates. Strong operating cash flow dividends from 2019
JackpotJoy plc A transformational year FY17 results Travel & leisure 2017 was a transformational year for JPJ, with a successful London listing followed by substantial improvements in the capital structure.
More informationLuk Fook (590 HK) Hold Target price: HK$ Downgrade to Hold on more challenging HK & Macau market outlook. Equity Research Consumer Discretionary
Equity Research Consumer Discretionary Luk Fook (590 HK) Hold Target price: HK$24.60 Albert Yip, CFA SFC CE No. ADT599 albertyip@gfgroup.com.hk +852 3719 1010 GF Securities (Hong Kong) Brokerage Limited
More informationItron, Inc. UNDERPERFORM ZACKS CONSENSUS ESTIMATES (ITRI-NASDAQ) SUMMARY
February 13, 2015 Itron, Inc. Current Recommendation Prior Recommendation Neutral Date of Last Change 02/08/2015 Current Price (02/12/15) $35.87 Target Price $33.00 SUMMARY DATA UNDERPERFORM 52-Week High
More informationDollarama Inc. Q2 F2017 Preview. (1) Growth expected to continue (2) A deeper look at valuation HIGHLIGHTS. The NBF Daily Bulletin.
DOL (T) $97.04 Stock Rating: Outperform (Unchanged) Target: $105.00 (Was $104.00) Risk Rating: Average (Unchanged) Est. Total Return: 8.6% Stock Data: 52-week High-Low (Canada) Bloomberg $98.94 - $66.32
More informationNote Important Disclosures on Pages 8-9 Note Analyst Certification on Page 8
COMPANY UPDATE / ESTIMATE CHANGE / TARGET CHANGE / RATING CHANGE Key Metrics AAPL - NASDAQ - as of 2/2/18 $160.50 Price Target $194.00 52-Week Range $128.16 - $180.10 Diluted Shares Outstanding (mil.)
More informationAnta Sports (2020 HK)
Equity Research Consumer Discretionary Anta Sports (2020 HK) Buy (maintained) Target price: HK$18.50 Product mix improvement in 4Q15 order book 4Q15 order book kept at low-teen, better product mix Order
More informationNote Important Disclosures on Pages 6-7 Note Analyst Certification on Page 6
COMPANY UPDATE / ESTIMATE CHANGE Key Metrics GOOGL - NASDAQ - as 4/23/18 $1,073.81 Price Target $1,100 52-Week Range $866.11 - $1,198.00 Diluted Shares Outstanding (mil) 703.5 Market Cap. ($mil) 1-Mo.
More informationD A I L Y R E S E A R C H C A L L P A C K
Sales & Research (212) 425-7500 www.argusresearch.com February 12, 2018 D A I L Y R E S E A R C H C A L L P A C K Changes in Argus s Target EPS New Prev COST Costco Wholesale Corp $200.00 $188.00 HCA HCA
More informationPhilip Morris International Inc.
September 8, 2017 PM: Marlboro Prices Going Up In Japan Outperform/$140 Overweight Company Note PM Wins Approval to Raise Marlboro Retail Prices by 2.2% in Japan Effective October 1 - Should Be A Positive
More information3QFY09 revenues in line but adjusted margins beat KIE. No changes in estimates for FY E
India Daily Summary - January 29, 2009 LUPIN January 29, 2009 Pharmaceuticals LUPN.BO, Rs562 Rating Sector coverage view Target Price (Rs) BUY Attractive 950 52W High -Low (Rs) 782-438 Market Cap (Rs bn)
More informationNote Important Disclosures on pages 5 and 6 Note Analyst Certification on page 5
COMPANY UPDATE/ ESTIMATES CHANGES/ PRICE TARGET CHANGE/ RATING CHANGE Key Metrics FFBC - NASDAQ (as of 01/19/18) $29.20 Price Target $33.00 52-Week Range $22.80-$29.40 Shares Outstanding (mm) 62.1 Market
More informationChow Sang Sang (116 HK)
Equity Research Consumer Discretionary Chow Sang Sang (116 HK) Hold (maintained) Target price: HK$14.00 1H16 China sales outperformed peers; still cautious on HK market Maintain Hold We revise down our
More informationAAON, Inc. (AAON) NEUTRAL Price Target: $33 Price: $ Sidoti & Company, LLC
February 28, 2019 Intraday Note Lower Earnings Estimates; Earnings Release AAON, Inc. (AAON) Equity Research 4Q:18 Revenue Beats, But EPS Misses On Soft Gross Margin; Although Backlog Supports Growth,
More informationZoe's Kitchen, Inc. ZOES NYSE Buy Restaurants
One Year Price Chart March 11, 2015 Zoe's Kitchen, Inc. ZOES NYSE Buy Restaurants Company Update Posts High Quality '+$0.01 Better' 4Q14 OpEPS; Issues 'In Line to Better' 2015 Guidance We reiterate our
More informationDaphne (210 HK) Hold (maintained) Target price: HK$1.07. Takeaways from company visit. Equity Research Consumer Discretionary.
Equity Research Consumer Discretionary Daphne (21 HK) Hold (maintained) Target price: HK$1.7 Takeaways from company visit Maintain Hold We recently visited Daphne to gain a more in-depth insight into its
More informationSodaStream Follow-Up: Very Strong 4Q Results Reflect Broad-Based Growth; Estimates Raised
EQUITY RESEARCH COMPANY UPDATE March 1, 2011 Stock Rating: OUTPERFORM 12-18 mo. Price Target $48.00 SODA - NASDAQ $39.68 3-5 Yr. EPS Gr. Rate 30% 52-Wk Range $46.88-$20.00 Shares Outstanding 19.2M Float
More informationMedifast, Inc. Top line still not taking shape, reiterate Neutral rating and decrease 2015 estimates. NYSE: MED
Medifast, Inc. NYSE: MED Top line still not taking shape, reiterate Neutral rating and decrease 2015 estimates. Medifast engages in the production, distribution, and sale of weight loss and weight loss
More informationAAON, Inc. (AAON) NEUTRAL Price Target: $34 Price: $ Sidoti & Company, LLC
December 16, 2016 Morning Meeting Note Raise Price Target AAON, Inc. (AAON) Equity Research Raise Target To $34 (From $28) On Anticipation Of A Lower Tax Rate; Continue To Forecast Strong Growth In 2017-2018;
More informationRelease Date Conference Call Time (Eastern) Contact Co. Guidance Consensus May 9 May 10 8:30am TBA NA $0.29
April 19, 2018 Company Sponsored Research Morning Meeting Note Earnings Preview OTC Markets Group Inc. (OTCM) Equity Research Forecast 10% EPS Growth In 1Q:18, Aided By Lower Taxes; View OTCM As Well Positioned
More informationOramed Pharmaceuticals Inc. (ORMP $7.21*)
Oramed Pharmaceuticals Inc. (ORMP $7.21*) Healthcare: Specialty Pharmaceuticals Buy; $20.00 PT; $104.2M Market Cap Company Update Tuesday, April 17, 2018 Revenue/EPS for 2Q18 in Line/Beat Estimates; Time
More informationTable 1. Sum-of-the-parts valuation. EPS Growth
(001120) Solid 4Q, excluding one-offs (LGI) yesterday reported that its consolidated sales rose 3.8% q-q to KRW3.8t in 4Q, but that its operating profit plunged 98% q-q to KRW600m with a net loss of KRW237.2b,
More informationLower Price Target To $4 (From $6); Near-Term Trends Are Less Favorable, But We Think Investment In Products Should Yield Benefits Over Time
April 27, 2018 Company Sponsored Research Morning Meeting Note Lower Price Target; Lower Earnings Estimates Socket Mobile, Inc. (SCKT) Equity Research Lower Price Target To $4 (From $6); Near-Term Trends
More informationTullett Prebon (LSE: TLPR LN)
December 1, 2008 Financial Services Market Structure & Trading United Kingdom Company Update Rating: Price: Price Target: Bloomberg: BUY 150p 260p LSE: TLPR LN Market Data 52-Week Range: 540p-125p Total
More informationMarket Bulletin. 4Q17 earnings update: Let s talk about taxes. January 31, In brief. Safety in earnings
Market Bulletin January 31, 2018 4Q17 earnings update: Let s talk about taxes In brief While higher volatility may be on the horizon, healthy earnings growth should prevent minor pullbacks from becoming
More informationSocket Mobile, Inc. (SCKT) NR Price Target: $6 Price: $4.04 Risk Rating: M. Sidoti & Company, LLC
October 27, 2017 Company Sponsored Research Morning Meeting Note Earnings Release Socket Mobile, Inc. (SCKT) Equity Research Maintain $6 Price Target; Robust Demand From Application Developer, Despite
More information