(By Balaseshan) Paints maker Sherwin-Williams Co. (NYSE:SHW) reported a 27.2 percent jump in quarterly earnings on higher volume and improved pricing. Despite a 9.3 percent growth, revenue missed consensus.
Profit jumped 27.2 percent to $227.81 million for the second quarter, while earnings per share (EPS) surged 30.7 percent to $2.17.
Net sales were higher by 9.3 percent to $2.57 billion, due primarily to higher paint sales volume in Paint Stores Group and selling price increases. Unfavorable currency translation rate changes decreased sales 2.5 percent, while acquisitions increased sales 1.0 percent.
Analysts, on average, expected the company to deliver EPS of $2.12 on revenue of $2.66 billion for the second quarter.
While net sales from the Paint Stores Group witnessed 14.6 percent upside on higher volume and improved pricing, consumer group sales rose 5.9 percent on volume growth and higher selling price.
Looking ahead for the third quarter, Sherwin-Williams sees EPS of $2.05 to $2.20 and sales to increase in the mid single digits. Street is expecting the company to earn $2.15 a share and revenue upside of 10.4 percent.
For the full year 2012, the company lifted its EPS guidance to range of $6.20 to $6.40 from previous forecast of $5.75 to $6.05. The company still expects sales to increase above 2011 levels by a high single digit-to-low-teens percentage. Street analysts predict EPS of $6.27 on revenue growth of 11.90 percent.
SHW ended Wednesday's regular session at $127.65. The stock has been trading between $69.47 and $133.97 for the past 52 weeks.