Valspar Costs Overshadow Sherwin-Williams' Revenue Gains
A strong economy makes homeowners more willing to spend money to do work on their homes, and Sherwin-Williams (NYSE: SHW) has been a beneficiary of that favorable trend for years. Not only has the paint specialist grown its own network of stores and products organically, but it has also made key strategic moves, buying rival Valspar to improve its position within the industry.
Coming into Thursday's second-quarter financial report, Sherwin-Williams investors were expecting the company to keep growing revenue and net income at a healthy pace. The paint-maker largely delivered on that front, with record quarterly sales results. Yet acquisition-related costs weighed on Sherwin-Williams' bottom line, and a drop in guidance related solely to those one-time costs affected investor sentiment negatively even as the company looked forward to stronger long-term prospects. Let's take a closer look at Sherwin-Williams and what its latest results say about its future.
Image source: Sherwin-Williams.
Source: Fool.com
Sherwin-Williams Co. Stock
With 30 Buy predictions and 1 Sell predictions Sherwin-Williams Co. is one of the favorites of our community.
With a target price of 313 € there is a slightly positive potential of 8.29% for Sherwin-Williams Co. compared to the current price of 289.05 €.
