Will Sherwin-Williams Company (SHW) Paint The Town Red?
November 09, 2009 8:27 AM
According to Barron’s, Wall Street can expect robust earnings from Sherwin -Williams Company (NYSE: SHW) as it keeps grabbing more market share from its rivals.
Sure, the Sherwin’s 3rd quarter revenues fell 12%, to $2 billion. As input prices fell, it’s Earnings per share increased – by a penny! To make matters worse, Sherwin also cut its guidance for the 4th quarter. While the Wall Street expected 61 cents, Sherwin projected somewhere between 35 – 50 cents a share.
Barron’s also feels that this low guidance may have prompted the Street to expect lower targeted price. But, Barron’s also quoted an anonymous analyst saying that, as the economy bounces back, sales of the Sherwin’s products will bounce. Then, as it has presence in the entire value chain, it has better control on costs. So, Barron’s feels that the Street can expect margins to shoot up.
