Sherwin-Williams misses by $0.06, beats on revs :
- Reports Q4 (Dec) earnings of $2.15 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of $2.21; revenues rose 6.8% year/year to $2.78 bln vs the $2.68 bln Capital IQ Consensus.
- Co issues guidance for Q1, sees EPS of $1.45-1.55, may not be comparable to $1.96 Capital IQ Consensus Estimate. First quarter 2017 earnings per share includes costs related to the anticipated acquisition of Valspar totaling approximately $.69 per share and an increase of approximately $.11 per share related to the decrease in the income tax provision.
- Q1 anticipate consolidated net sales will increase a mid to high single digit percentage y/y.
- Co issues guidance for FY17, sees EPS of $13.00-13.20, may not be comparable to $13.70 Capital IQ Consensus Estimate. Full year 2017 earnings per share includes costs related to the anticipated acquisition of Valspar totaling approximately $.80 per share and an increase of approximately $.20 per share related to the decrease in the income tax provision
- For the full year 2017, expect consolidated net sales to increase a mid single digit percentage compared to full year 2016.
- Valspar (VAL) Acquisition
- "We now expect a divestiture will be required to gain approval from the FTC to complete the acquisition of Valspar. We are moving forward on a divestiture that we believe will allow us to gain approval from the FTC. The expected divestiture has revenues below the $650 million threshold, and we expect to negotiate the divestiture and complete the Valspar transaction at $113 per common share within 90 days".