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Sherwin-Williams Lifts Earnings Forecast on Robust Paint Demand

Published Oct 24, 2023 21:42
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Global paint giant Sherwin-Williams (NYSE:SHW), under the leadership of CEO John Morikis, has announced a significant increase in its 2023 earnings forecast. The upward revision comes amidst a robust demand for paint, even as housing markets experience slowdowns.

The company's revised net income estimate now ranges between $9.21 and $9.41 per share, marking an increase from the previous projection of $8.46 to $8.86 per share. Additionally, Sherwin-Williams has also lifted its adjusted profit targets to $10.10-$10.30 per share, up from the earlier $9.30-$9.70 range. This upward trend follows the company's solid performance in 2022 when it reported adjusted earnings of $8.73 per share.

Sherwin-Williams, currently with a market capitalization of $61.32 billion, operates with a high return on assets of 10.36%, according to InvestingPro data. The company's growth is reflected in its revenue, with a 10.5% increase year-on-year, reaching $22960.9 million. This performance aligns with one of the InvestingPro Tips, which indicates that Sherwin-Williams yields a high return on invested capital.

The company also anticipates minor fluctuations in Q4 sales due to regional and market differences, given that it is a seasonally smaller quarter. This is in line with InvestingPro's indication of the company trading at a low P/E ratio relative to near-term earnings growth.

In a similar vein, PPG Industries (NYSE:PPG), a competitor in the paint industry, has also projected growth in line with Sherwin-Williams' forecast. This anticipated growth is largely attributed to strong demand from the aerospace and automotive sectors.

Sherwin-Williams has been a consistent performer in the market, with the InvestingPro Tips highlighting its track record of increasing earnings per share and maintaining dividend payments for 45 consecutive years. The company's current dividend yield stands at 1.01%, with a growth of 0.83% year-on-year.

For more insights like these and access to real-time metrics, investors can visit InvestingPro. The platform offers numerous additional tips about Sherwin-Williams and other companies, helping investors make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Sherwin-Williams Lifts Earnings Forecast on Robust Paint Demand
 

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