Sherwin-Williams (NYSE:SHW) shareholders beat a booming market last month. Their stock rose 11% in April compared to a 5.2% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally put the global paint titan back ahead of the market, up 14% so far in 2021.
Wall Street was happy with Sherwin-Williams' latest earnings update, which on April 27 showed accelerating demand growth. Sales rose 12% through late March, and earnings shot higher thanks to improving profitability.
In a press release, CEO John Morikis credited rising demand, especially in the U.S. residential painting niche, for the gains. Higher sales volumes also allowed Sherwin-Williams to raise paint prices without losing its growth momentum. "All three of our segments delivered strong top-line growth and profit expansion," Morikis said.
The company left its full-year earnings outlook unchanged while citing risks around demand volatility and rising raw material prices. But continued strength in the U.S. housing market appears set to lift revenue up in the mid-to-high-single-digit range, according to the company. Given encouraging trends in that industry, Sherwin-Williams might raise that outlook as part of its fiscal-second-quarter results in late July.