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Sherwin-Williams (SHW) Q3 Earnings & Sales Beat Estimates

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The Sherwin-Williams Company (SHW - Free Report) is a manufacturer, distributor and retailer of paint, coatings and related products. It is one of the biggest paint companies in the United States and in the world.  

Sherwin-Williams remains focused on growth through acquisitions and expansion of operations. The company is gaining from favorable demand for paint and coatings in most domestic markets as well as its cost control initiatives.

Let’s have a quick look at this paint company’s third-quarter 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Sherwin-Williams for the third quarter has been going down over the past month. The company has beaten the Zacks Consensus Estimate in two of the trailing four quarters and missed in two, with an average beat of around 3%.


Sherwin-Williams’ adjusted earnings for the quarter came in at $4.75 per share. Earnings surpassed the Zacks Consensus Estimate of $4.70.


Sherwin-Williams reported revenues of $4,507 million, up around 37.4% year over year. The figure surpassed the Zacks Consensus Estimate of $4,386.4 million.

Key Developments to Note

Sherwin-Williams projects mid-to-high single digit percentage increase in net sales, year over year for fourth-quarter 2017. The company expects earnings per share in the fourth quarter to be in the range of $1.97 to $2.27 per share, compared to $2.15 earned in the fourth quarter of 2016. The projected fourth-quarter earnings per share includes a 98 cents per share charge associated with the Valspar acquisition.

For full-year 2017, Sherwin-Williams projects mid-single digit percentage increase in net sales from 2016. It also sees incremental sales from the Valspar buyout to be roughly $2.5 billion for the year. At this level, the company now expects earnings per share for the year to be in the range of $11.20 to $11.50 per share, compared with $11.99 earned in 2016. The guidance includes a $3.21 per share charge related to the Valspar acquisition.

Zacks Rank

Currently, Sherwin-Williams has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.

Market Reaction

Sherwin-Williams’ shares were down 1.4% in the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Sherwin-Williams’ earnings report!

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