WASHINGTON (dpa-AFX) - Shares of Sherwin-Williams Company (SHW) slipped nearly 4% in extended session on Tuesday after the paint maker lowered its third-quarter sales guidance and narrowed its full year 2021 sales and earnings outlook reflecting raw material availability challenges and inflation headwinds.
Looking forward to the third quarter, the company now expects third-quarter sales to be flat to down slightly compared to third quarter 2020. Previously, the company expected third-quarter sales guidance to be up or down by a low-single digit percentage over prior year.
For the third quarter, Sherwin-Williams expects profit of $1.80 to $1.90 per share.
Analysts polled by Thomson Reuters currently expect earnings of $2.44 per share and revenue growth of 1.90% for the quarter.
For the full year 2021, the company now expects sales to be up by a high single digit percentage over full year 2020 and earnings of $7.21 to $7.41 per share. Previously, the company expected sales growth of high-single to low-double digit percentage over full year 2020 and earnings of $8.01 to $8.31 per share.
Analysts currently estimate earnings of $9.21 per share and revenue growth of 9.70%.
Chairman, President and Chief Executive Officer John Morikis said, 'The persistent and industry-wide raw material availability constraints and pricing inflation we have previously reported have worsened, and we do not expect to see improved supply or lower raw material pricing in our fourth quarter as anticipated.'
SHW is currently trading at $279.62, down $7.99 or 2.78%, on the NYSE. The stock further dropped $10.62 or 3.80% in the after-hours trading.
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