Sherwin-Williams Co. (NYSE: SHW) is under trading pressure this morning based on an earnings warning the company issued in pre-market hours. The paint and coatings company cited lower sales, housing woes, and of course the lovely higher cost of raw materials. It had already lowered numbers earlier.
For its second quarter, it sees $1.40 to $1.50 EPS, down from its prior guidance of $1.45 to $1.60 and under the $1.53 estimate from First Call. But the full-year forecast is far worse. It now sees $3.60 to $4.10 EPS for the year, down from its prior guidance of $4.70 to $4.85 EPS and well under First Call’s estimate of $4.71 EPS.
Shares are down over 6% right after the open at $52.35. Its 52-week trading range is $49.99 to $73.96.
There is obviously a severe issue on new homes and relatively new homes, but the good news is ultimately people have to pain their existing homes whether they want to or not. When funds are tight, maybe it’s easier to just let the paint peel.
Jon C. Ogg
June 3, 2008
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