Important points
Shares of Sherwin-Williams fell on Tuesday after the company’s third-quarter results fell short of analysts’ expectations. Sales and profits increased year-on-year, but not as much as expected. CEO Heidi Petz said the company “remains in a state of instability.” “Softness” is required for paint products.
Shares of Sherwin-Williams (SHW) fell on Tuesday morning after the paint maker reported lower-than-expected third-quarter profits due to weak demand in the do-it-yourself (DIY) paint market.
The Cleveland-based paint maker reported total sales of $6.16 billion for the quarter, up less than 1% from the year-ago period but narrowly missing expectations of $6.22 billion. . Profits rose more than 5% to $806.2 million, but still missed the $873.54 million consensus estimate of analysts tracked by Visible Alpha.
Sherwin-Williams says it faces ‘volatility’ in demand
CEO Heidi Petz said the company believes the North American DIY market “remains in a volatile demand environment” and “continues to be weak” due to “inflation and rising consumer debt levels.” The company said that this is having a negative impact on sales in its consumer brands division.
Sherwin-Williams also affirmed its previously raised full-year guidance during its second-quarter earnings release, with net sales flat to low single-digit growth and earnings per share (EPS) from $10.30 to $10.60. I expected it to be.
Sherwin-Williams shares fell nearly 3% after the market opened on Tuesday, but are still up about 19% since the beginning of the year.
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