Sherwin-Williams beats profit estimates on strong demand for paints, coatings
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A can of Ronseal varnish, a Sherwin-Williams brand, is seen on a shelf inside a DIY retail store in Manchester, Britain, June 14, 2024. REUTERS/Phil Noble
By Pranav Mathur
(Reuters) -Sherwin-Williams beat Wall Street estimates for quarterly profit on Tuesday, boosted by strong demand for its paints and coatings in a recovering housing market, sending its shares up 4%.
U.S. home sales, which dipped in July, rebounded sharply in August to a 3-1/2-year high and held near a seven-month peak in September, as wealthier households continued to spend on renovations and maintenance.
That recovery supported demand for Sherwin-Williams' paints and coatings, particularly through its Paint Stores Group, which caters to professional contractors and homeowners.
The paintmaker said total net sales rose to $6.35 billion for the third quarter from $6.16 billion a year ago.
Sales at the Paint Stores Group grew 5.1%, led by double-digit gains in protective and marine coatings and steady demand in commercial and residential repaint markets.
The Performance Coatings Group posted a 1.7% rise in net sales, helped by packaging and auto-refinish coatings.
On an adjusted basis, the Ohio-based company reported an adjusted profit of $3.59 per share, beating analysts' estimates of $3.44 per share, according to LSEG data.
In a post-earnings call, the company said it expected some headwinds in the first half of 2026 from both demand and costs, but plans to offset the pressure through pricing actions.
"From a demand perspective, it appears that a very challenging environment ... we have announced a 7% price increase in our Paint Stores Group effective January 1," CEO Heidi Petz said.
The company also tightened its full-year adjusted profit forecast to a range of $11.25 to $11.45 per share from its previous estimated range of 11.20 to $11.50 per share.
(Reporting by Pranav Mathur in Bengaluru; Editing by Leroy Leo)
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