Sherwin-Williams 1Q Earnings Rise, Full-Year Guidance Maintained
By Robb M. Stewart
Sherwin-Williams continues to expect a rise in earnings and sales for the year despite what it said was continued demand choppiness in several markets in the early months of 2024.
The paint and coatings company recorded a rise in first-quarter net income to $505.2 million, or $1.97 a share, from $477.4 million, or $1.84, a year earlier. On an adjusted basis stripping out certain items, earnings came in at $2.17, below the $2.22 mean estimate of analysts polled by FactSet.
Sales for the three months slipped 1.4% to $5.37 billion, and missed the $5.5 billion consensus expectation on Wall Street.
Sherwin-Williams said sales in its paint stores division were up slightly thanks to a modest contribution from a price increase at the start of February, which is expected to have a greater impact r realization in the second quarter. Commercial and protective and marine unit sales also grew, while the company said new residential sales were down as expected and delayed capital expenditure projects impacted property maintenance sales. In the company's consumer brands arm, it said North America DIY paint demand remained soft, though that was partially offset by international growth.
Sherwin-Williams forecast second-quarter sales to be flat to up a low-single digit percentage.
It maintained its guidance for the full year, with sales expected to be up a low- to mid-single digit percentage and per-share earnings between $10.05 and $10.55 against $9.25 per share in 2023. Adjusted earnings per share are expected to be $10.85 to $11.35, versus $10.35 last year.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
April 23, 2024 07:47 ET (11:47 GMT)
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