The Sherwin-Williams Company (SHW) has announced record second revenue and upped its full-year profit and sales guidance, sending its shares higher.
Shares of the Cleveland-based paint company added 4.7% at US$280.67 late morning on Tuesday.
For the second quarter, which ended on June 30, 2023, SHW reported a 38.9% jump in its earnings per share (EPS) from $2.21 in the year-ago quarter to $3.07 per share.
Revenue increased 6.3% to a record $6.24 billion.
Analysts, on average, had expected SHW to report EPS of $2.71 on revenue of $6.02 billion, according to Zacks Consensus Estimate.
Also sending the company’s shares higher on Tuesday was its increased full-year 2023 profit guidance of $8.46 to $8.86 per share from its previous guidance of $6.79 to $7.59 per share, which includes an acquisition-related amortization expense of $0.81 and restructuring expense of $0.03 per share.
It now expects adjusted EPS of $9.30 and $9.70, up from its previous guidance of $7.95 to $8.65.
It also boosted its revenue guidance to up a low-single-digit percentage from its prior forecast of flat to down a mid-single-digit percentage.
"As a result of our better-than-expected first-half results, and our current visibility into the second half, we are increasing our sales and earnings guidance for the full year," SHW CEO John G. Morikis said in a statement. “We expect to continue delivering above-market growth and returns.”
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie