Sherwin-Williams, a leading paint company, has announced an increase in its earnings forecast for the year. Despite a slowdown in the housing market, the demand for paint remains high.
Sherwin now expects its net income for 2023 to be in the range of $9.21 to $9.41 per share, up from its previous estimate of $8.46 to $8.86 per share. On an adjusted basis, the company has raised its profit target to $10.10 to $10.30 per share, compared to the previous target of $9.30 to $9.70 per share. In 2022, Sherwin’s adjusted earnings were $8.73 per share.
Outlook for Fourth Quarter
For the fourth quarter, Sherwin anticipates sales to either contract by a low-single-digit percentage or experience low single-digit percentage growth compared to the same period last year. Chairman and Chief Executive John Morikis mentioned that the fourth quarter is usually smaller in size, and they expect fluctuations in different regions and end markets.
Sherwin’s competitor, PPG Industries, has also revised its growth projections for the year due to strong demand from the aerospace and automotive sectors.