Sherwin-Williams raises 2024 profit forecast on upcoming residential demand

Sherwin-Williams increased its full-year earnings forecast and reported a second-quarter profit that exceeded Wall Street expectations, driven by higher prices and increased sales in its paint stores and coating segments.

CEO Heidi Petz highlighted growth in new residential projects and expects continued momentum in the latter half of the year. The company projects a low-single-digit percentage increase in consolidated net sales for the third quarter compared to the same period last year.

Shares rose 5.5% in premarket trading following the announcement. Sherwin-Williams now forecasts an adjusted profit per share of $11.10 to $11.40 for 2024, slightly above analyst expectations of $11.37 per share.

Despite a slight dip in overall sales to $6.27 billion, falling short of estimates, the company reported an adjusted profit of $3.70 per share, surpassing the expected $3.48 per share. However, there was a noted decline in the Consumer Brands Group sales, attributed to reduced DIY-paint demand in the U.S.

Source: Reuters