Shares of paint company Sherwin-Williams Co. (SHW) - Get Report tumbled Tuesday after the company reported that its fourth-quarter and full-year revenue and earnings will fall short of previous forecasts.
The Cleveland-based company expects consolidated fourth-quarter revenue to increase 2% year over year, short of previous guidance that called for a mid-single digit percentage increase.
Shares fell 4.1% to $381.44 at the close of trading on Tuesday.
"Our performance in the fourth quarter was disappointing across the board relative to our outlook back in October. 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 G. Morikis said.
Net income for the full year is now expected to be about $11.15 a share, down from October guidance of earnings between $13.85 and $14 a share, because of lower-than-expected fourth-quarter sales.
Adjusted earnings, which exclude acquisition-related costs, is expected to be about $18.53 a share, also well short of its previous guidance between $19.05 and $19.20. Despite falling short of previous guidance, the company does expect 2018 earnings to rise 23% from 2017.
Sherwin-Williams is scheduled to report its full earnings results and 2019 guidance on Jan. 31.