Shares of The Sherwin-Williams Company (NYSE:SHW) fell in today's pre-market trading after the company reported third-quarter adjusted EPS and sales below analyst estimates.
Sherwin-Williams posted adjusted earnings of $3.37 per share, missing market estimates of $3.54 per share. The company posted sales of $6.162 billion, missing market estimates of $6.201 billion. Sherwin-Williams shares dipped 8.3% to $350.01 in pre-market trading.
Sherwin-Williams posted adjusted earnings of $3.37 per share, missing market estimates of $3.54 per share. The company posted sales of $6.162 billion, missing market estimates of $6.201 billion. Sherwin-Williams shares dipped 8.3% to $350.01 in pre-market trading.
Category
🗞
NewsTranscript
00:00I think Sherwin-Williams is interesting. I'd maybe do that one next because it's really having a big
00:05move here. SHW trade down. It's bouncing off the lows. That's the good news. It was actually,
00:10if you bring up the pre-worked shares, a lot lower earlier. But give us those earnings,
00:13AB, then we'll analyze the technicals here. All right. So Sherwin-Williams this morning
00:18reported EPS of $3.37. The consensus was $3.54. So missed there. Let's see. You had sales coming
00:28at $6.16 billion. That missed the $6.2 billion estimate. Guidance came in at $11.10 to $11.40
00:38a burst and $11.50 estimate. So EPS guidance came in lower than expected as well. So basically
00:45missed across the board for Sherwin-Williams, which of course is probably the largest paint
00:50company I'd imagine in the country. PPG is the other big one. So you got SHW and PPG.
00:57Yeah. So you mentioned we're bouncing up the lows here. So the stock got all the way down
01:01to around $3.47, and we're back up to $3.60 now. So a $13 bounce here on Sherwin-Williams
01:10after this stock. I mean, you look at where we were trading before the report, around $3.83,
01:15got down to $3.47, now back up to $3.60. So some wild trading in Sherwin-Williams this morning.
01:21Lots of thoughts here. Paint is so expensive. I mean, I don't know if there's anything that's
01:27been inflated more than paint. You go and get a gallon of paint in Canada there,
01:31and it's $60, $70, $80, depending on the type of paint you get. It's expensive.
01:37You wonder if, obviously new builds need paint, everybody, but you start wondering,
01:44like people looking, oh, I'm going to change, like my wife is active, like, oh, I just want
01:48to change the color of the room. I think some people looking at the price of paint might just
01:52be like, nah, you know, I'm fine with this color. Like if you need to paint something,
01:57you need to paint something. But if you're just painting because you're bored with the color,
02:01and you go looking at $60, $70, $80 a gallon, and maybe in the States it's a little cheaper
02:05because of the currency, you might just be a little bit hesitant here. So is this a little
02:09bit, not fully discretionary, but a little bit discretionary? It is. I think it is.
02:15So obviously not for all businesses, but there's a little bit of a discretion component here,
02:19and I wonder if the higher prices isn't hurting demand just to a certain extent.
02:24Good news is the stock has bounced off the lows. Technically speaking, it kind of bounced,
02:28you know, where you'd want to, $3.45, $3.50 area. I'm sure there's some optionality down there.
02:33$3.61. There seems to be people who are willing to buy the dip here today. So
02:37that's the good news. Obviously the bad news for the stock is it's still down 5%.
02:41Yeah. And you just look at a stock like Sherwin-Williams and you're really not expecting
02:46it. I mean, where we were at too, even just a few minutes ago, I mean, you're not expecting it to be
02:52down 30 bucks off earnings, right? It's not like a tech stock. It's paint. So you'd think it's going
02:57to be pretty stable, but got absolutely hammered. And then let's, is this right? Are we back up? Are
03:03we at the $3.65 right now? Did we get another bounce? Are you seeing that too, Dennis?
03:08Yeah. All right. So we, when we started talking about it, it was at around $3.60. Now it's all
03:13the way up to $3.65. So continuing to bounce here on Sherwin-Williams. So it's kind of,
03:17this is kind of like the anti-General Motors report.