UPDATE: Sherwin-Williams Posts Rise In Q2 Earnings, Lifts Full-Year Guidance
Sherwin-Williams Co (NYSE: SHW) reported a 13% gain in its second-quarter earnings and lifted its full-year earnings outlook.
The Cleveland, Ohio-based company posted a quarterly profit of $291.4 million, or $2.94 per share, versus a year-ago profit of $257.3 million, or $2.46 per share.
Its net sales climbed 12% to $3.04 billion. Sherwin-Williams in April expected a profit of $2.80 to $3 per share on sales growth of 8% to 14%. Analysts were expecting earnings of $2.93 per share on revenue of $3.01 billion.
Its gross margin rose to 46.3% from 45.5%, while same-store sales increased 9.8%.
The company's sales in the paint stores group jumped 17% to $1.88 billion, while sales in the consumer group climbed 10% to $433.4 million. Sherwin-Williams' sales in the global finishes group jumped 6.1% to $544.6 million. The Latin America coatings group's net sales dropped 8.9% to $181.2 million.
Sherwin-Williams now expects full-year earnings of $8.50 to $8.70 per share, versus earlier forecast of $8.12 to $8.32 per share.
For the third quarter, Sherwin-Williams projects earnings of $3.15 to $3.25 per share on net sales growth of 9% to 14%. Analysts expected earnings of $3.06 per share on revenue growth of 10%.
Christopher M. Connor, Chairman and Chief Executive Officer, said, "We are pleased with the continued strong positive sales and earnings per share momentum.”
Sherwin-Williams shares climbed 3.10% to $207.99 in pre-market trading.
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