Sherwin-Williams Reports Higher Profit, Outlook
April 21 2016 - 8:50AM
Dow Jones News
Sherwin-Williams Co. raised its outlook for 2016 as the paint
maker reported its first-quarter earnings rose 12% amid
better-than-expected revenue growth driven by stronger sales
volume.
For 2016, the Cleveland company raised its per-share earnings
estimate to a range of $12.50 to $12.70 from its previous estimate
of $12.20 to $12.40.
For the current quarter, Sherwin-Williams forecast per-share
earnings of $3.95 to $4.15 and net sales growth in the low- to
mid-single digits. Analysts polled by Thomson Reuters expected
per-share profit of $4.10 and revenue growth of 3% to $3.22
billion.
Sherwin-Williams last month agreed to buy rival Valspar Corp.
for more than $9 billion, a deal that would help Sherwin-Williams
get better access to big-box retailers such as Lowe's Cos., where
Valspar is a big seller, and expand abroad.
For the latest quarter, net sales in Sherwin-Williams paint
store group increased 11% to $1.62 billion amid broad growth across
its markets. Sales at established stores increased 9.4%.
Consumer group net sales grew 7.5% to $378.1 million, mostly
owing to sales of HGTV Home by Sherwin-Williams paint to
home-improvement retailer Lowe's.
Over all, Sherwin-Williams reported a profit of $147.1 million,
or $1.57 a share, up from $131.4 million, or $1.38 a share, a year
earlier. Excluding items such as acquisition-related costs,
adjusted earnings were $1.81 a share. Revenue increased 5.1% to
$2.57 billion.
The company expected per-share profit of $1.50 to $1.65 and
sales growth in the low single digits.
Gross margin rose to 49% from 46.2%.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
April 21, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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