NEW YORK (TheStreet) -- Shares of Sherwin-Williams (SHW - Get Report) were falling 9.77% to $250.74 on heavy trading volume early Tuesday afternoon after the paint company reported 2016 third quarter earnings that missed Wall Street's estimates and issued a downbeat outlook.

Before today's market open, the Cleveland-based company posted adjusted earnings of $4.23 per share, below analysts' forecasts of $4.31 per share.

Revenue for the quarter grew 4% over last year to $3.28 billion and largely met Wall Street's projections.

For the full year, Sherwin Williams cut its adjusted earnings per share outlook to a range of $12.25 to $12.35, down from prior estimates for earnings per share of $12.50 to $12.70. Wall Street is looking for adjusted earnings of $12.63 per share.

In the fourth quarter, Sherwin-Williams said it expects adjusted earnings per share between $2.13 and $2.23. Analysts are modeling adjusted earnings of $2.43 per share for the fourth quarter.

The company's lower-than-anticipated fourth quarter and full year guidance is attributed to its pending $9.3 billion acquisition of paint maker Valspar (VAL).

Sherwin-Williams said its balance sheet remains "flexible" and is "positioned well" to purchase Valspar. The companies expect the deal to close in the first quarter of 2017.

Additionally, Sherwin-Williams said CFO Sean Hennessy would step down to the role of senior VP of corporate planning, development and administration, effective January 1.

Allen Mistysyn will take over as CFO and will also become senior VP of finance. Previously, Mistysyn had served as Sherwin-Williams' senior VP/corporate controller.

More than 3.3 million shares of Sherwin-Williams have traded so far today vs. the 30-day average volume of about 777,000 shares.

Separately, 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 articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, 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