Sherwin-Williams 2Q Profit Tops Estimates Despite Choppy Demand Environment

By Denny Jacob

Sherwin-Williams posted better-than-expected profit in its latest quarter despite facing ongoing choppiness in the overall demand environment.

The paint and coatings company logged net income of $889.9 million, or $3.50 a share, for the second quarter ended June 30, up from $793.7 million, or $3.07 a share, a year earlier. Adjusted earnings were $3.70 a share, above analysts' estimates of $3.49 a share.

Sales ticked up to $6.27 billion from $6.24 billion. Analysts polled by FactSet expected $6.33 billion.

Paint Store Group sales increased primarily due to low-single digit sales volume growth and ongoing realization of higher selling prices set in place earlier in the year. Consumer Brands Group sales decline due in part to a mid-single digit percentage sales volume decline as a result of soft do-it-yourself demand in North America, among other factors.

Sherwin-Williams forecast sales to be up by a low-single digit percentage in the third quarter.

For full year 2024, the company now sees sales up by a low-single digit percentage rather than up low to mid-single digit percentage as it guided for in April. The company said the change reflected continued demand uncertainty in several end markets. It raised its adjusted earnings per-share outlook to between $11.10 and $11.40 compared to its prior guidance in the range of $10.85 a share and $11.35 a share.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

July 23, 2024 07:39 ET (11:39 GMT)

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