Sherwin-Williams raises FY23 adjusted EPS view to $9.30-$9.70 from $7.95-$8.65

Consensus is for FY23 EPS $8.82. Sees FY23 revenue up low-single digit percentage. “As a result of our better than expected first half results, and our current visibility into the second half, we are increasing our sales and earnings guidance for the full year,” said Chairman and CEO, John G. Morikis. “At the same time, our second half comparisons remain challenging, and demand is likely to vary widely by region and end market, leading us to focus even more intensely on our new account and share of wallet initiatives. In the Paint Stores Group, we expect demand to remain solid in commercial, property maintenance, protective and marine and residential repaint. We expect new residential demand to remain soft due to continued slowing of completions, though share gains should enable us to outperform the market. In the Consumer Brands Group, North America DIY demand remains soft, Europe demand has stabilized and Latin America markets are mixed. In the Performance Coatings Group, North America demand has slowed, and Europe and Asia remain choppy. Even in challenging environments like the current one, we remain confident in our strategy, and we will continue to invest in stores, sales and technical reps, innovation, digital and other growth initiatives to press our advantages now as well as when markets recover more fully. We expect to continue delivering above market growth and returns. As for our guidance, we expect Q3 consolidated net sales growth to be up or down a low-single digit percentage compared to the Q3 of 2022. For the FY23, we are increasing both sales and net income per share guidance. We now expect full year consolidated net sales to be up a low-single digit percentage compared to 2022, versus our prior guidance of flat to down a mid-single digit percentage. Our full year diluted net income per share guidance is now $8.46-$8.86 per share, versus our prior guidance of $6.79-$7.59 per share. This includes acquisition-related amortization expense of $0.81 per share and net expense related to the Restructuring Plan of $0.03 per share. FY23 adjusted diluted net income per share is now expected to be in the range of $9.30-$9.70 per share, compared to our prior guidance of $7.95-$8.65 per share and $8.73 per share in 2022.”