Sherwin-Williams beat estimates for Q3, generating record revenue for the quarter following a Sept. 6 price increase of 10%. Revenue was up 17.5%, to $6.05 billion. Net sales from U.S. and Canada stores open at least a year were up nearly 21% for the quarter.
In the previous quarter (Q2), S-W earnings and revenue missed Wall Street estimates. This quarter, both numbers exceeded estimates.
“Our margins improved as a result of pricing actions across all businesses and volume increases in all architectural paint end markets in The Americas Group,” said Chairman and Chief Executive Officer, John G. Morikis.
“In The Americas Group, we continued to capture strong demand across all professional architectural markets, as same-store sales increased 20.7% in the third quarter, and we are seeing strong realization from our September 6th 10% price increase.”
Net sales in The Americas Group (TAG) increased due primarily to higher architectural sales volume across all end markets and selling price increases. TAG segment profit increased due primarily to higher paint sales volume and selling price increases, partially offset by increased raw material costs. The Company purchased 2.75 million shares of its common stock during the first nine months, according to the company’s press release.
“We expect the strong positive results we experienced in the third quarter to continue into the fourth quarter, driven by continued momentum in both The Americas Group and North American industrial end markets, continued price realization, good cost control, and softer year-over-year comparisons,” said Morikis.
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