Analyst Note| Spencer Liberman |
Wide-moat-rated Sherwin-Williams reported solid fourth-quarter results on strong pricing gains and margin improvement. Management cited continued supply and material cost inflation improvements during the quarter but noted both remain a concern. Consolidated operating margins improved 80 basis points over the prior year to 13.6% as selling price increases offset higher input and operating costs. While volume growth was mixed across segments during the quarter, we expect growth to be pressured in 2023 amid heightened economic uncertainty.