Sherwin-Williams Earnings: Residential Repaint Drives Growth Despite Industrial Headwinds

Wide-moat Sherwin-Williams reported third-quarter results that were largely in line with our expectations. Net sales rose 0.7% year over year as growth in the paint stores group was offset by lower sales in the consumer brands and performance coatings segments. Sherwin experienced strong demand in some end markets, such as packaging and residential repaint, but headwinds remain in DIY and general industrial end markets. That said, we expect resilient residential repaint markets will continue to buoy Sherwin’s results for the remainder of the year. As such, we've increased our fair value estimate to $242 from $233 per share.