Sherwin-Williams Co. Ups Outlook As Q1 Earnings Beat Estimates

Written by StockNews.com

Sherwin-Williams Co. (NYSE: SHW) early Thursday posted better than expected first-quarter earnings results and boosted its full-year guidance, as sales at its namesake stores continue to rise.

The Cleveland-based paint and coatings maker reported:

adjusted Q1 earnings per share (EPS) of $2.27, which was $0.19 better than the Wall Street consensus estimate of $2.08.

Revenues rose 7.3% from last year to $2.76 billion, also beating analysts’ view for $2.72 billion…The revenue gains were mostly due to higher paint sales volumes at its stores, along with an accounting change that resulted in 2.2% higher revenues.

Looking ahead, Sherwin-Williams forecast:

Q1 EPS of $4.40 to $4.60, which is in-line with Wall Street’s consensus view of $4.44.

EPS for the full year 2017 ranging from $14.05 to $14.25, well ahead of analysts’ current $13.76 estimate, and up from prior guidance of $13.60 to $13.80.

The company commented on its performance via press release:

“We are pleased to report record sales and earnings per share from the continued positive sales volume and strong operating results of our Paint Stores Group and operating margin improvement in our Global Finishes Group.

Our Paint Stores Group posted another quarter of improved operating results and architectural volume growth.

The Consumer Group improved their operating margins through improved operating efficiencies.

Our Global Finishes Group improved their operating results through higher paint sales volume and selling price increases.

The Latin America Coatings Group continues to see the positive impact of previous investments partially offsetting weak end market demand in some geographies.

All of our operating segment management teams continue to control costs and implement price increases to offset rising raw material costs.”

Sherwin-Williams Co. shares rose $4.59 (+1.47%) to $316.13 premarket trading Thursday. Year-to-date, SHW has gained 16.24%, versus a 4.89% rise in the benchmark S&P 500 index during the same period.