Sherwin-Williams reports record sales in Q3, stock rallies

Yahoo Finance anchors discuss third-quarter earnings for Sherwin-Williams after the paint company raised prices by 10% in September.

Video Transcript

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BRIAN SOZZI: All right, from powering your house to painting it. Shares of Sherwin-Williams, they are in focus here this morning. We're seeing the stock up 7% following an earnings beat on both the top and bottom lines. Interesting quarter here from Sherwin-Williams. A little bit of a different tone than what we were hearing from this company late last year and into the first quarter.

They're calling out that on September 6, they raised prices 10%. So one of really the key themes of this earnings season, whether it's Coca-Cola, Sherwin-Williams, they are-- there continues to be very large price increases by big companies on a household goods throughout this economy. Clearly, this is not-- look what the Federal Reserve is trying to do--

BRAD SMITH: Yeah.

BRIAN SOZZI: --trying to lower prices. And you have Sherwin-Williams out here increasing prices 10% on September 6.

BRAD SMITH: It was record net sales results in the third quarter. And for the customers that Sherwin-Williams is going after, it's everyone who either has just bought a new home, which had led me to believe that there might be some softness in this report, it's not what they saw.

And even though you are seeing less bidding on some of the existing homes out there and confidence in delivering homes low right now relative to comparable year-over-year, I think for Sherwin-Williams, this is everybody from the DIYer, everybody who liked me just messes up their walls trying to put new things up on it.

And for some of the other people who are saying, you know what? All right, we're finally in that new home, regardless of the rate that we're paying for it long term, yeah, we've got some painting to do. So Sherman-- Sherwin-William-- Sherwin-Williams, perhaps, the net beneficiary of that. But yeah, record net sales results.