(Reuters) -Sherwin-Williams beat Wall Street estimates for quarterly profit on Tuesday, boosted by strong demand from professional painters and higher sales in its protective coatings business.
Shares of the company rose 5.5% to $354.95 in pre-market trading.
U.S. home sales, which dipped in July, rebounded sharply in August to a 3-1/2-year high and held near a seven-month peak in September, as wealthier households continued to spend on renovations and maintenance.
The recovery in housing activity supported demand for Sherwin-Williams’ paints and coatings, particularly through its Paint Stores Group, which caters to professional contractors and homeowners.
The paintmaker said total net sales rose to $6.35 billion for the third quarter, from $6.16 billion a year ago.
Sales at the Paint Stores Group grew 5.1%, led by double-digit gains in protective and marine coatings and steady demand in commercial and residential repaint markets.
The Performance Coatings Group posted a 1.7% rise in net sales, helped by packaging and auto-refinish coatings.
On an adjusted basis, the Ohio-based company reported an adjusted profit of $3.59 per share, beating analysts’ estimates of $3.44 per share, according to LSEG data.
The company also tweaked its full-year adjusted profit forecast to a range of $11.25 to $11.45 per share, compared with its previous outlook of between $11.20 and $11.50.
(Reporting by Pranav Mathur in Bengaluru; Editing by Leroy Leo)
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