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Key Takeaways
- Sherwin-Williams shares fell Tuesday after the paint maker posted third-quarter results below what analysts were expecting.
- Sales and profits grew year-over-year, but not as much as expected.
- CEO Heidi Petz said the company has seen “continued choppiness” and “softness” in demand for its paint products.
Sherwin-Williams (SHW) shares slipped Tuesday morning after the paint manufacturer’s third-quarter earnings missed estimates as demand in the do-it-yourself (DIY) painting market slumped.
The Cleveland-based paint maker reported $6.16 billion in total sales for the quarter, up less than 1% from the same time last year but narrowly missing estimates of $6.22 billion. Profits rose just over 5% to $806.2 million, but still fell short of the $873.54 million consensus estimate from analysts tracked by Visible Alpha.
Sherwin-Williams Says It Faces ‘Choppiness’ in Demand
CEO Heidi Petz said the company has seen “continued choppiness in the demand environment,” and a “continued softness” in the North American DIY market, “driven by inflation and higher consumer debt levels,” negatively impacting sales in its consumer brands segment.
Sherwin-Williams also affirmed its full-year outlook after previously raising it in when it released second-quarter results, projecting a flat to a low single-digit increase in net sales, with earnings per share (EPS) between $10.30 to $10.60.
Sherwin-Williams shares were down close to 3% just after markets opened Tuesday, but have still gained about 19% since the start of the year.
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