Sherwin-Williams Company (NYSE:SHW) stock rose Thursday after the company delivered a quarterly beat on profit and sales.
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of $2.23, beating the analyst consensus estimate of $2.16. Quarterly sales of $5.595 billion outpaced the Street view of $5.544 billion.
Net sales in the Paint Stores Group grew 2.7% year over year to $3.127 billion.
Consumer Brands Group sales soared 24.5% to $824.7 million, while Performance Coatings Group sales gained 3.3% to $1.642 billion.
“Consolidated net sales were at the high end of our guidance, adjusted EBITDA improved by a low-teens percentage, and adjusted diluted net income per share increased by a mid-single digit percentage,” said CEO Heidi G. Petz.
Gross profit in the quarter under review soared to $2.712 billion from $2.573 billion. Gross margin contracted to 48.5% from 48.6%.
The company exited the quarter with cash and equivalents worth $207.2 million.
Outlook
Sherwin-Williams expects fiscal 2026 adjusted earnings of $11.50 to $11.90 per share (Street view: $12.42). Company sees GAAP earnings of $10.70 to $11.10 per share (Street view: $11.92).
A Sherwin-Williams executive said the outlook for existing home sales in 2026 ranges from slightly lower to double-digit growth, calling demand “hard to predict”, while expecting the new residential market to decline by mid-single digits this year.
The firm said it plans to recommend a 1.3% dividend increase to $3.20 per share at its next board meeting.
SHW Price Action: Sherwin-Williams shares were up 1.13% at $353.55 at the time of publication on Thursday, according to Benzinga Pro data.
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