Brian Beder
Sherwin Williams (New York Stock Exchange: SHWrose on Tuesday as much as 5.6% to a 17-month high of $282.98 a share after the paint maker reported second-quarter results that beat the median estimate among Wall Street analysts.
Its earnings rose 17% to $794 million, or $3.10 From $678 million, or $2.24 per share, a year ago. Adjusted earnings per share of $3.29 beat consensus estimates of $2.58.
Sales increased 6.3% year over year to $6.24 billion, compared to a combined estimate of $6.03 billion.
Sherwin-Williams (SHW) attributed much of its sales gain to higher prices among its business segments, while lower raw material costs.
Same-store sales at locations open more than a year were up 9.5% from the prior year.
“As a result of our better-than-expected first-half results, and our current view into the second half, we are increasing our sales and earnings guidance for the full year,” John G. Morikis, the company’s chairman and chief executive officer, said in a statement. Meanwhile, second half comparisons remain challenging, and demand is likely to change widely by region and end market, prompting us to focus more on our new account and share.
Management raised full-year adjusted EPS guidance to a range of $9.30 to $9.70 from the previous level of $7.95 to $8.65.