Sherwin-Williams reports Q3 adjusted EPS $3.59, consensus $3.44

Reports Q3 revenue $6.36B, consensus $6.2B. “Sherwin-Williams (SHW) delivered solid Q3 results, as we continued to execute our strategy in a demand environment that remains softer for longer as we have previously described,” said CEO Heidi Petz. “Throughout the quarter, we continued to serve our customers, invest for success, control our costs, take advantage of a unique competitive environment, and execute on our enterprise priorities. On a year-over-year basis, consolidated sales increased at the high-end of our guided range. Gross margin expanded, and SG&A growth moderated to the low single-digit percentage level as we expected, inclusive of targeted growth investments, restructuring costs, and new building costs. We grew adjusted EBITDA margin and adjusted diluted EPS while returning $864M to shareholders through share repurchases and dividends during the quarter. Paint Stores Group sales grew in every end market, led by protective and marine, residential repaint and commercial, and segment margin expanded. Consumer Brands Group sales remained challenging but were better than expected, and adjusted segment margin expanded. Performance Coatings Group sales grew driven by Packaging and Automotive Refinish, with adjusted segment margin remaining in our targeted range.”