Sherwin-Williams (SHW) Cuts Q3 Sales View on Raw Material Issues
Sherwin-Williams (SHW) lowered its third-quarter consolidated net sales guidance to be up or down by a low-single digit percentage over third-quarter...
The Sherwin-Williams Company SHW lowered its net sales guidance for the third quarter of 2021, while keeping its full-year net sales and net income per share view unchanged.
The company lowered its third-quarter consolidated net sales guidance to be up or down by a low-single digit percentage over third-quarter 2020 from its prior view of up mid-to-high single digit percentage.
The full-year 2021 consolidated net sales guidance remains unchanged at up a high-single to low-double digit percentage over 2020 levels.
The full-year net income per share guidance remains intact in the range of $8.01-$8.31 per share, including 80 cents per share for acquisition-related amortization expenses and a loss of 34 cents per share on the Wattyl divestiture.
The company stated that it is witnessing strong demand across the pro architectural and industrial end markets it serves. However, sustained and industry-wide raw material availability issues have not improved as expected, affecting its ability to fully meet high demand.
It now expects raw material availability, including the unfavorable impact of Hurricane Ida, to affect its third-quarter consolidated sales by a high-single digit percentage. Its total cost basket— including raw materials, transportation and labor— continues to move upward, the company noted.
Shares of Sherwin-Williams have gained 26.7% in the past year compared with a 23.6% rise of the industry.
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Zacks Rank & Other Key Picks
Sherwin-Williams currently carries a Zacks Rank #3 (Hold).
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Dow has an expected earnings growth rate of around 403% for the current year. The company’s shares have gained 24.6% in the past year. It currently carries a Zacks Rank #2 (Buy).
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