Sherwin-Williams Raises Guidance

After the closing bell, Sherwin-Williams (SHW) raised its sales guidance for Q2 and the entire year. The paint people also raised their earnings guidance for this year.

Sherwin now sees Q2 sales rising by “a high-teens percentage” over last year’s Q2. For the entire year, Sherwin sees sales “up a high-single to low-double-digit percentage” compared with last year.

SHW sees 2021 earnings of $9.15 to $9.45 per share. The previous forecast range was $8.80 to $9.07 per share.

“We outperformed expectations in the first quarter, and sales in The Americas Group and Performance Coatings Group have been stronger than expected in the second quarter,” said Chairman, President and Chief Executive Officer, John G. Morikis. “Demand remains strong in our architectural end markets, led by residential repaint and new residential, with continued improvement in commercial and property management. Demand is also strong on the industrial side of our business and is recovering faster than expected. At the same time, the raw material inflation we experienced in the first quarter has continued in the second quarter. We have great confidence we will offset these higher costs, and we are implementing additional price increases across all our segments, including a 7% August 1st price increase in The Americas Group. We now expect our full year 2021 adjusted diluted net income per share to increase 13.6% at the midpoint of the range compared to the prior year.”

The stock is down some in the after-hours market due to the cost pressures mentioned above in bold.

Posted by on June 8th, 2021 at 5:11 pm


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