Sherwin-Williams shares sink after earnings miss

Pigment is added to a gallon of ProMar 200 paint, an interior latex with zero volitile organic compounds (VOC's), at a Sherwin-Williams Co. store in Princeton, Illinois.
Daniel Acker | Bloomberg | Getty Images
Pigment is added to a gallon of ProMar 200 paint, an interior latex with zero volitile organic compounds (VOC's), at a Sherwin-Williams Co. store in Princeton, Illinois.

Sherwin-Williams shares plunged more than 10 percent Tuesday after the company posted earnings that sharply missed Wall Street estimates.

The paint distributor reported earnings of $4.08 a share, missing analysts' estimates for $4.32, according to a consensus from Thomson Reuters. The company also cut its earnings guidance to between $11.30 a share and $11.40 a share, down from its previously reported outlook of between $11.65 a share and $11.85 a share.

"Revenue growth on a comparable basis slowed sequentially in the third quarter across most of our reportable segments," said CEO John Morikis, in a statement. "Despite this slowdown, we remain bullish on future demand across most of our end markets, and we continue to invest in areas that will drive growth and productivity in the quarters and years ahead."

Meanwhile, the company posted quarterly revenue of $3.28 billion, matching Wall Street estimates according to Thomson Reuters.

Looking forward to the fourth quarter, the company projects earnings of between $1.45 a share and $1.55 per share, compared to 2015's fourth quarter of $2.12 per share. Sherwin-Williams' fourth quarter results will also include costs related to its $9 billion acquisition of Valspar earlier this year, totaling to approximately 71 cents per share, according to the statement.