Sherwin-Williams (NYSE: SHW) reported Q2 EPS of $4.15, $0.01 worse than the analyst estimate of $4.16. Revenue for the quarter came in at $3.22 billion versus the consensus estimate of $3.28 billion.

GUIDANCE:

Sherwin-Williams sees Q3 2016 EPS of $4.10-$4.30, versus the consensus of $4.41.

Sherwin-Williams raised FY2016 EPS to $11.65-$11.85, which may not compare to the consensus of $12.68.

Commenting on the financial results, John G. Morikis, President and Chief Executive Officer, said, "We are pleased to report record sales and earnings per share from the continued positive sales volume and strong operating results of our Paint Stores Group and operating margin improvements in our Global Finishes Group. Our Paint Stores Group posted another quarter of positive operating results and architectural volume growth. Consumer Group continues to invest in customer programs to increase sales and improved its six month operating results through improved operating efficiencies. Our Global Finishes Group improved its operating results through improved operating efficiencies and good cost control. The Latin America Coatings Group continues to manage through the negative effects of currency devaluation and weak end market demand in some geographies.

"We continued to invest in our business by opening 31 net new locations in the Paint Stores Group in the first six months. During the quarter, we increased the dividend rate to $.84 from $.67 last year. Our balance sheet remains flexible and is positioned well for future acquisitions and other investments in our business.

"For the third quarter, we anticipate our consolidated net sales will increase a low to mid single digit percentage compared to last year's third quarter. At that anticipated sales level, we estimate diluted net income per common share in the third quarter of 2016 to be in the range of $4.10 to $4.30 per share, compared to $3.97 per share earned in the third quarter of 2015. Third quarter 2016 earnings per share includes costs related to the anticipated acquisition of Valspar totaling approximately $.20 per share and an increase in EPS of approximately $.10 per share related to the decrease in the income tax provision. For the full year 2016, we expect consolidated net sales to increase by a low single digit percentage compared to full year 2015. With annual sales at that level, we are raising our guidance for full year 2016 diluted net income per common share to be in the range of $11.65 to $11.85 per share, compared to $11.16 per share earned in 2015. Full year 2016 earnings per share includes costs related to the anticipated acquisition of Valspar totaling approximately $1.30 per share and an increase in EPS of approximately $.45 per share related to the decrease in the income tax provision."

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