The Sherwin-Williams Company (NYSE:SHW) shares are trading lower after the company reported third-quarter adjusted EPS and sales below analyst estimates.

Quarterly revenue rose 0.7% to $6.16 billion, missing the analyst consensus of $6.20 billion.

Revenue benefitted from the higher sales in the Paint Stores and the impact of the acquisition in 2023, partly offset by lower sales in the Consumer Brands and Performance Coatings Groups.

Net sales in Paint Stores Group rose 3.2%, driven by low-single-digit growth in sales volume and the continued impact of higher selling prices introduced earlier in the year.

Quarterly gross profit increased to $3.028 billion from $2.92 billion a year ago. Gross margin in the quarter expanded to 49.1 % from 47.7% a year ago.

Adjusted earnings per share of $3.37 missed the Wall Street view of $3.54.

The company returned cash of $1.97 billion to shareholders in the form of dividends and repurchases of 4.4 million shares of its common stock during the first nine months of 2024.

As of September 30, 2024, the company had authorization to buy back 35.3 million shares of its common stock through open market purchases.

Sherwin-Williams’ regular quarterly dividend of $0.715 per common share is payable on December 6 to shareholders of record on November 15.

Sherwin-Williams exited the quarter with cash and cash equivalents worth $238.2 million.

Outlook: Sherwin-Williams reaffirmed 2024 adjusted EPS guidance to $11.10 – $11.40 vs. the $11.50 estimate.

The company now expects full year 2024 sales to be flat to up a low-single-digit percentage (prior view: up low-single digit percentage) compared to full year 2023.

For the fourth quarter, Sherwim-Williams expects net sales growth to be flat to up low-single-digit percentage.

President and Chief Executive Officer Heidi G. Petz said, ”We are highly confident these current near-term investments in stores, sales and technical reps, expanded services and digital capabilities will help generate sustained and profitable above-market growth. We expect SG&A to moderate sequentially, resulting in a low to mid-single digit increase for the second half as anticipated.”

“In our pro architectural business, demand remains variable by end market, with no impact to date from recent interest rate cuts. North American DIY demand remains weak driven by inflation and higher consumer debt levels. In our industrial businesses, demand remains choppy by end market and region.”