Sherwin-Williams 3Q earns up, tops Street

NEWS: Sherwin-Williams' third-quarter net income increased 12 percent, bolstered by better results from its paint stores, consumer and global finishes groups. Its adjusted results and revenue topped analysts' expectations. The company also lowered its full-year earnings forecast.

DETAILS: The Cleveland company, whose brands include Dutch Boy, Minwax and its namesake paints, said that sales at stores open more than a year rose 10.9 percent. This figure is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.

Sales for the paint stores group climbed 13.5 percent, while consumer group sales rose 5.4 percent. Sales for the global finishes group increased 3.2 percent, while the Latin American coatings group's sales were flat.

NUMBERS: Sherwin-Williams Co. earned $263 million, or $2.55 per share, for the three months ended Sept. 30. That compares with $235 million, or $2.24 per share, in the prior-year period.

Removing a charge of 13 cents per share from government tax assessments related to its Brazilian operations, earnings were $2.68 per share. Analysts polled by FactSet forecast earnings of $2.63 per share.

Revenue rose 10 percent to $2.85 billion from $2.6 billion. Wall Street called for $2.78 billion in revenue.

FUTURE: The company now foresees full-year earnings of $7 to $7.30 per share. Its prior guidance was for $7.45 to $7.55 per share. Revenue is still anticipated to rise by a mid-single-digit percentage from the previous year. Analysts predict earnings of $7.67 per share.

For the fourth quarter, Sherwin-Williams expects earnings of $1.29 to $1.39 per share and revenue growth of 5 percent to 7 percent. Wall Street is looking for earnings of $1.37 per share.

STOCK: The stock added $5.40, or 2.9 percent, to $192.40 in morning trading.