Sherwin-Williams Stock Rises as Firm Benefits From Higher Prices, Lower Costs
Key Takeaways
Sherwin-Williams (
SHW
) shares jumped after the maker of paints and other industrial products exceeded profit estimates on high prices and reduced expenses.
The company posted first-quarter adjusted earnings per share (EPS) of $2.25 on revenue that declined 1% year-over-year to $5.31 billion. Analysts surveyed by Visible Alpha expected $2.16 and $5.39 billion, respectively.
Sherwin-Williams credited the strong profit to “higher selling prices in the Paint Stores Group and effective cost control.” Sales at the Paint Stores Group rose 2% to $2.94 billion. Consumer Brands Group sales fell 6% to $762.2 million, and they dropped nearly 5% to $1.60 billion at the Performance Coatings Group.
“In a demand environment that remained choppy as we anticipated, Sherwin-Williams continued to execute our strategy and delivered solid first quarter results driven by
gross margin
expansion and good cost control,” CEO Heidi Petz said.
The company anticipates full-year adjusted EPS in the range of $11.65 to $12.05, with the midpoint matching the Visible Alpha outlook of $11.85.
The news sent shares of Sherwin-Williams up nearly 5% and into positive territory for the year.
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