U.S.A. stock market: Higher sales, lower earnings for Sherwin-Williams

Sherwin-Williams Co., $76.72, symbol SHW on New York, is North America’s largest paint producer. It operates over 3,900 paint and finishing stores around the world.

Sherwin is one of the stocks we analyze in Wall Street Stock Forecaster, our newsletter for U.S.A. stock market investing.

In the three months ended June 30, 2011, Sherwin’s sales rose 9.9% to $2.4 billion from $2.1 billion a year earlier. Acquisitions accounted for 5.1% of sales growth, while higher selling prices and increased sales from existing stores also continued to the gain.

Earnings fell 1.4%, to $179.1 million from $181.7 million. Earnings per share, however, increased 1.2%, to $1.66 from $1.64, as the average number of shares outstanding during the period declined by 2.8%. Earnings in the 2010 second quarter also included an $0.08-cent-a-share charge related to the early retirement of debt.

The company opened 18 net new paint stores in the quarter, and plans to open 50 to 60 stores in total during 2011.

Sherwin-Williams holds cash of $71.6 million or $0.68 a share. Its long-term debt of $644.3 million is just 8% of its $8.2-billion market cap.

Sherwin-Williams is just one of the U.S.A. stock market investments we analyze in our Wall Street Stock Forecaster newsletter. You can get the latest issue, along with 5 in-depth Special Reports, access to our weekly Email/Telephone Hotlines and much more absolutely FREE when you subscribe now. Click here to learn how.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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