Sherwin-Williams Shares Lower After Earnings, Guidance Miss

   By Michael Dabaie

Sherwin-Williams Co. shares were down 1.8% at $287.58 after the paint and coatings company's quarterly earnings and guidance missed analyst views.

Sherwin-Williams earlier reported fourth-quarter net sales increased to $4.762 billion, short of FactSet consensus of $4.766 billion. Adjusted earnings per share were $1.34, missing FactSet consensus for $1.68.

"Our full year and fourth quarter were marked by industry-wide supply chain disruptions, unprecedented cost inflation and ongoing challenges related to the pandemic," said Chief Executive John G. Morikis.

Sherwin-Williams guided for 2022 adjusted EPS of $9.25 to $9.65, below FactSet consensus for $9.79.

"As we indicated in our mid-January announcement of preliminary results, demand remains strong across our end markets, though we expect raw material availability and Covid-related issues to persist through the first quarter. Given these near-term headwinds, we expect first-quarter 2022 consolidated net sales will be up a low to mid-single digit percentage compared to the first quarter 2021," Mr. Morikis said.

For the full-year 2022, the company guided for consolidated net sales to increase by a high-single-digit to low-double-digit percentage from 2021.

"We expect full-year raw material costs to remain elevated but to moderate sequentially, and we will continue to implement pricing actions as appropriate to offset increased costs," Mr. Morikis said.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

January 27, 2022 12:13 ET (17:13 GMT)

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