Sherwin-Williams Co. late Tuesday raised its sales and profit outlook on “strong” demand for paints and other products, but said rising costs for raw materials have led it to raise prices.
stock fell 1.5% in the extended session after ending the regular trading day up a fraction.
The Cleveland-based company increased its second-quarter sales guidance to be up in the “high-teens percentage” as compared to the second quarter of 2020, and increased its full-year 2021 sales guidance to be up a high-single to low-double-digit percentage over full-year 2020, it said.
It called for a full-year 2021 per-share profit in a range between $8.01 and $8.31. Analysts polled by FactSet expect the paint and coatings company to report a GAAP EPS of $8.52 for the year.
“We outperformed expectations in the first quarter, and sales in the Americas group and performance coatings group have been stronger than expected in the second quarter,” Chief Executive John G. Morikis said in a statement.
“Demand remains strong” in the company’s architectural markets, “led by residential repaint and new residential, with continued improvement in commercial and property management,” he said.
The industrial side of the business also saw “strong” demand “and is recovering faster than expected,” Morikis said.
Raw-material inflation, however, will continue in the second quarter. The company will offset these higher costs with additional price increases across all its segments, including a 7% price increase for its Americas products on Aug. 1, it said.
Sherwin Williams is expected to report second-quarter earnings on July 27. The analysts surveyed by FactSet expect the company to report adjusted per-share earnings of $2.62 a share on sales of $5.2 billion, which would compare with sales of $4.6 billion in the second quarter of 2020.
The company, along with other paint makers such as PPG Industries Inc.
has benefited from the pandemic-fueled home-improvement boom.