Sherwin-Williams Company ( SHW ) shares are trading lower in the morning session on Tuesday.

The company reported first-quarter adjusted earnings per share of $2.17, missing the Wall Street view of $2.21. 

Quarterly revenue of $5.367 billion missed the analyst consensus of $5.505 billion. 

Consolidated net sales decreased 1.4% in the quarter. Delayed capex projects impacted Property Maintenance sales.

Net sales from stores in the Paint Stores Group open more than twelve calendar months were approximately flat in the quarter.

Quarterly gross profit increased to $2.531 billion from $2.420 billion a year ago. Gross margin in the quarter under review expanded to 47.2% from 44.5% a year ago.

The company returned cash of $728 million to shareholders in the form of dividends and repurchases of 1.7 million shares of its common stock during the first quarter of 2024. 

Sherwin-Williams ( SHW ) exited the quarter with cash and equivalents worth $179.9 million.

“We also continued to execute our capital allocation strategy by investing $546 million in share repurchases and increasing our dividend 18.2% in the quarter,” said President and Chief Executive Officer Heidi G. Petz.

Outlook: Sherwin-Williams ( SHW ) reaffirmed 2024 adjusted EPS guidance of $10.85-$11.35 versus the $11.44 estimate.

The company expects consolidated net sales to be up a low to mid-single digit percentage compared to the full year 2023.

“We expect second quarter 2024 consolidated net sales to be flat to up a low-single digit percentage compared to the second quarter of 2023,” Petz added.

The company plans to provide an update on its full-year guidance during second-quarter results in July.

Price Action: SHW shares are trading lower by 3.2% to $299.37 at the last check Tuesday.