Sherwin-Williams Shares Climb Amid Higher Prices and Reduced Costs

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Key Takeaways

Sherwin-Williams surpassed profit expectations, thanks to increased pricing and decreased costs, although its revenue fell short of forecasts. The paint and coatings leader saw gains primarily from its Paint Stores Group. Following the announcement, Sherwin-Williams shares entered positive territory for the year 2025.

Sherwin-Williams (SHW) experienced a notable boost in its stock after reporting adjusted earnings that exceeded analysts’ expectations, owing to higher pricing strategies and effective cost management.

For the first quarter, the company reported adjusted earnings per share (EPS) of $2.25, with revenue down 1% year-over-year, totaling $5.31 billion. Analysts from Visible Alpha had projected an EPS of $2.16 alongside revenue of $5.39 billion.

The firm attributed its strong profitability to “higher selling prices in the Paint Stores Group and effective cost control measures.” Notably, sales from the Paint Stores Group grew by 2% to reach $2.94 billion. Meanwhile, the Consumer Brands Group saw a 6% decline in sales to $762.2 million, while the Performance Coatings Group experienced a nearly 5% drop to $1.60 billion.

CEO Heidi Petz remarked, “In a demand environment that remained choppy as we anticipated, Sherwin-Williams continued to execute our strategy and delivered solid first-quarter results driven by gross margin expansion and good cost control.”

Looking ahead, the company projects full-year adjusted EPS will fall between $11.65 to $12.05, with the midpoint aligning closely with the Visible Alpha forecast of $11.85.

This positive financial report resulted in a nearly 5% increase in Sherwin-Williams shares, pushing them into positive territory for the year.

Source
www.investopedia.com