What caused SHW's earnings to decline in Q3 2024?

Sherwin-Williams' earnings decline in Q3 2024 was caused by a combination of factors:

1. Revenue Shortfall: The company's total revenue fell slightly below market expectations, coming in at $6.16 billion compared to the consensus estimate of $6.2 billion. This shortfall, although modest, contributed to the overall earnings decline.
2. Analyst Estimate Miss: Sherwin-Williams missed analyst estimates on both earnings per share (EPS) and revenue. The EPS for the quarter was $3.37, which was $0.18 less than the estimated $3.55. This discrepancy, although small, signaled a decline in profitability relative to expectations.
3. Demand Choppiness: Despite the challenges, Sherwin-Williams managed to grow sales, expand gross margin, and increase EBITDA and adjusted diluted net income per share. The company's strategic investments, such as those in the Performance Coatings Group and the Consumer Brands Group, are expected to yield long-term benefits.

In summary, Sherwin-Williams' Q3 2024 earnings decline was primarily due to a shortfall in revenue and a miss on analyst estimates, despite the company's strategic initiatives aimed at long-term growth.