Copyright Benzinga
Sherwin-Williams Co (NYSE:SHW) shares are seeing blue skies on Tuesday after the company reported third-quarter FY25 results. Earnings Details The American paints and coatings company reported quarterly adjusted earnings per share of $3.38, below the Wall Street view of $3.81. Quarterly revenue of $6.36 billion beat the analyst consensus of $6.20 billion. Also Read: This Sherwin-Williams Analyst Is No Longer Bearish; Here Are Top 5 Upgrades For Thursday Consolidated net sales increased 3.2% year over year (Y/Y) in the quarter and remained at the high end of the guided range. Quarterly gross profit increased to $3.126 billion from $3.028 billion a year ago. Gross margin in the quarter under review expanded to 49.2% from 49.1% a year ago. Adjusted EBITDA rose 6.0% Y/Y to $1.36 billion, with an adjusted EBITDA margin of 21.4% in the quarter. The company returned $864 million to shareholders through share repurchases and dividends in the quarter. Sherwin-Williams exited the quarter with cash and equivalents worth $241.5 million. Segment Details Net sales from stores in the Paint Stores Group that have been open for more than 12 calendar months rose 3.6% Y/Y in the quarter. This was led by protective and marine, residential repaint and commercial businesses. Also, net sales in Performance Coatings Group rose 1.7% Y/Y, aided by sales volume growth, incremental sales from acquisitions, and favorable foreign currency translation. However, net sales in Consumer Brands Group fell 2.6% Y/Y on weak DIY demand in North America and Latin America. Management Commentary Chair and CEO Heidi G. Petz said, “Sherwin-Williams delivered solid third quarter results, as we continued to execute our strategy in a demand environment that remains softer for longer as we have previously described.” Outlook The company narrowed its full-year 2025 adjusted EPS guidance to $11.25–$11.45, down from $11.20–$11.50. The new midpoint is slightly ahead of the $11.32 consensus estimate. It now expects consolidated net sales to be up low-single digit compared (vs. up or down by a low single-digit percentage prior) in the year. For the fourth quarter, the company expects net sales to be up in the low to mid-single-digit percentages. ”This full year guidance includes the Suvinil acquisition, which closed on October 1, and which we expect will increase the Company’s consolidated net sales by a low-single digit percentage in the fourth quarter, with an immaterial impact to diluted net income per share in the fourth quarter given one-time transaction closing costs and purchase accounting items,” Petz added, Price Action: Sherwin-Williams shares were up 5.19% at $353.51 at the last check on Tuesday. Read Next: DuPont’s Qnity Expands SK Hynix Partnership As It Prepares To Go Solo Photo: Shutterstock
