Sherwin-Williams (NYSE:SHW) stock is taking a hit on Tuesday as the company warned of an update surrounding its profit for its fiscal year, which is now slated to be below both the paint maker’s guidance and Wall Street’s consensus estimate.
The Cleveland, Ohio-based company saw its stock decline by as much as 7.5% in premarket trading today as its fiscal 2018 earnings are going to be short of what everyone was calling for. CEO John Morikis said that these underwhelming results are associated with a performance that “was disappointing across the board.”
“Consolidated revenue growth for the fourth quarter fell well short of our previous expectation, due in large part to weak sales growth by our North American stores in October and November,” CEO John Morikis added in his statement. The Sherwin-Williams boss added that the company’s store sales did rebound slightly in December, but this improvement was not enough to carry the rest of it shortcomings during the period.
The paint company added that it now sees its fiscal 2019 adjusted earnings to be about $18.53 per share, which is below the company’s previous guidance of earnings in the range of $19.05 to $19.20 per share. Analysts were calling for Sherwin-Williams to rake in a profit of $19.11 per share for the fiscal year.
The company added that it sees its fourth-quarter revenue to gain 2% year-over-year, below its previous guidance of a mid-single digit percentage surge.
SHW stock is declining about 4.1% on Tuesday following the update.