NEW YORK (TheStreet) -- Shares of Sherwin-Williams (SHW - Get Report) are down 7.05% to $290.10 on heavy trading volume Thursday afternoon after cutting its fiscal-year earnings guidance to reflect its acquisition of rival paint maker Valspar (VAL).
Sherwin-Williams now expects to report 2016 per-share earnings between $11.65 and $11.85, including $1.30 of acquisition-related costs and 45 cents of tax benefits. The forecast is down from its April outlook for per-share earnings between $12.50 and $12.70.
For the current quarter, the company expects to report adjusted earnings between $4.20 and $4.40 per share, while analysts are looking for earnings of $4.41 per share on revenue of $3.32 billion.
The company also reported disappointing results for the 2016 second quarter.
Sherwin-Williams reported adjusted earnings of $4.06 per share vs. analysts' estimates of $4.16 per share for the period. Revenue increased 2.8% year-over-year to $3.22 billion but missed analysts' estimates of $3.23 billion.
Second-quarter sales from stores open at least 12 months rose 5.2% from a year ago.
About 2.44 million shares of Sherwin-Williams have been traded so far today, well above its average trading volume of roughly 671,114 shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Sherwin-Williams' strengths such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: SHW
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.