U.S. and Europe stocks advanced Tuesday, after Boris Johnson beat Jeremy Hunt to become Britains next prime minister. Health services (up 15.4%), commercial (up 10.4%) and tech (up 8.2%) are among the sectors with strongest gains. The Dow Jones Industrial Average gained 0.31% to 27,256, the S&P 500 index gained 0.28% to 2,993, and the Nasdaq Composite Index rose 0.16% to 8,217.
Shares ofThe Sherwin-Williams Co. (SHW) gainedmore than6%afterannouncingsecond-quarter results. Thecompany posted earnings of$6.57per share and revenues of $4.88billion, reflecting a2.3%declinefrom the comparable trimester of the previous year. The company beat earnings estimates by21centsbut fell shortof revenue expectations by $60million.
Sherwin-Williams delivered record results in net sales, Ebitda, profit before taxes and net operating cash in the second quarter, overcoming uneven demand in end markets outside the U.S. and persistently challenging selling conditions in North American architectural paint markets,John G. Morikis, Sherwin-Williams chairman and CEO, said.
By segments, the Americas segment had net salesof$2.76 billion, up5% year-over-year, due tohigher paint sales volume across all end markets in North American stores. Inthe Consumer Brands segment, net salesincreased3.4% to $804.5 milliondue toa new customer program and higher selling prices.Net sales in Performance Coatings fell 3.8% to $1.32 billion.
Looking ahead to thethird quarter,the company expectsconsolidated net salestoincrease by a low single-digit percentage compared tothe samequarter a year ago. For the full year 2019,the companyexpectsconsolidated net sales will increase2-4%compared to the full year 2018. Adjusted diluted net income per shareis expectedto bebetween $20.40 and$21.40 per share.
During the quarter endedMarch 31,Tom GaynerTradesPortfolio)increased his position in the company182% to31,000sharesandJoel GreenblattTradesPortfolio) added 35% to 6,531 shares.Steven CohenTradesPortfolio)reducedhisholding by95% to3,802shares, andRon BaronTradesPortfolio)trimmedhis positionby32% to13,485shares.
Avery Dennison Corp. (NYSE:AVY) + 4.98%
Lamb Weston Holdings Inc. (NYSE:LW) -4%
The main European stock markets tradedmostly higher. The U.K.s FTSE 100rose0.70%, Frances CAC 40inched up1.12%, Germanys Daxgained1.81% and Spains Ibex 35rose1.32%.
In Asia, Japans Nikkei 225gained0.95%, Indias BSE Sensexlost0.13%, Hong Kongs Hang Sengadvanced0.34% and Chinas Shanghai Compositegained0.45%.
Disclosure:The author holdsno positions in any stocks mentioned.
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Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.
GuruFocus has detected 7 Warning Signs with Sherwin-Williams Co SHW.
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