Sherwin-Williams Shares Plummet as Q2 Earnings, Q3 Forecast Badly Miss View (SHW)
Paint and coatings maker Sherwin-Williams Company (SHW) on Thursday posted disappointing second quarter earnings and offered a weak third quarter outlook, sending its shares sharply lower in morning trading.
The Cleveland-based company reported second quarter net income of $257.29 million, or $2.46 per share, compared with $227.81 million, or $2.17 per share, in the year-ago period. Excluding items, adjusted profit was $2.54 per share.
Revenue rose 5.5% from last year to $2.71 billion.
On average, Wall Street analysts expected a higher profit of $2.59 per share on larger revenue of $2.79 billion.
Looking ahead, SHW said it expects third quarter earnings to range from $2.55 to $2.65 per share, on 6% to 9% sales growth. Those numbers would badly miss analysts’ estimates for $2.80 per share on 22% sales growth.
Sherwin-Williams shares fell $11.54, or -6.3%, in premarket trading Thursday. The stock is now up only about 12% on the year.
The Bottom Line
SHW shares currently offer a 1.1% dividend yield, based on last night’s closing price of $183.19 and the company’s annualized dividend payout of $2 per share.
Sherwin-Williams Company (SHW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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