The Sherwin-Williams Company’s SHW earnings (excluding acquisition costs of 24 cents per share) surged 31.2% to a record $1.81 per share in the first quarter of 2016 from $1.38 recorded a year ago, mainly on improved operating results in the Paint Stores Group. Earnings also outpaced the Zacks Consensus Estimate of $1.63. Reported earnings climbed to $1.57 per share from $1.38 per share a year ago. Currency swings affected earnings by 6 cents per share. Sherwin-Williams, whose well-known brands include Dutch Boy, Minwax and Krylon, recorded net sales of around $2,574 million in the first quarter, marking a 5.1% year-over-year rise. Revenues surpassed the Zacks Consensus Estimate of $2,478 million.Increased paint sales volumes in Sherwin-Williams’ Paint Stores and Consumer Groups led to higher sales in the quarter, partly offset by unfavorable currency translation. Currency swings had an unfavorable impact of 2.8% on consolidated net sales. The Sherwin-Williams Company (SHW) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany Segment Review The Paint Stores Group unit registered net sales of $1.62 billion in the reported quarter, up 10.5% year over year. The improvement was driven by increased architectural paint sales volume across all end markets. Net store sales from stores open for more than 12 calendar months rose 9.4% from the prior-year quarter. Sherwin-Williams added 13 net new locations in its Paint Stores Group in the quarter.Net sales of the Consumer Group unit rose 7.5% to $378.1 million mainly due to the sale of HGTV HOME products by Sherwin-Williams to Lowe's stores. The segment’s profits were driven by improved operating efficiencies and higher volume sales.Net sales from the Global Finishes Group segment fell 3.3% to $454.2 million in the quarter, mainly due to unfavorable currency impact that hurt sales by 4.7%. Segment profits improved year over year owing to a fall in costs of raw materials and cost-control initiatives, which were partly offset by unfavorable currency translations.Latin America Coatings Group’s net sales declined 24.7% to $125.2 million, primarily due to unfavorable currency translation and less volume, partly mitigated by a higher selling price. Unfavorable currency translation affected sales by 22.2% in the quarter. Segment profit decreased owing to increasing raw material costs and an unfavorable currency translation rate. Financials and Shareholder Returns Sherwin-Williams made no open market purchases of its common stock in the reported quarter. At the quarter’s end, the company had remaining authorization to purchase 11.65 million shares of its common stock through open market purchases. During the quarter, the company raised the dividend rate to 84 cents from 67 cents per share last year. Acquisition On Mar 20, 2016, the company reported that it had entered into an agreement to purchase the Valspar Corporation VAL. Outlook Sherwin-Williams, which is among the leading paint companies, along with PPG Industries Inc. PPG and Akzo Nobel NV AKZOY, expects consolidated net sales to increase a low-to-mid single-digit percentage in second-quarter 2016 from second–quarter 2015. The company forecasts net income in the second quarter, excluding acquisition costs, in the range of $3.95 to $4.15 per share. Costs related to the proposed acquisition of Valspar are projected to hurt net income per share by about 15 cents in the ongoing quarter. For 2016, Sherwin-Williams expects consolidated net sales to increase by a low single-digit clip from 2015. The company raised its full-year earnings guidance and expects earnings, excluding acquisition costs, in the range of $12.50 to $12.70 per share (up from $12.20–$12.40 per share expected earlier). It expects costs related to the planned acquisition of Valspar to be in the range of $185 million to $205 million this year. Sherwin-Williams currently carries a Zacks Rank #4 (Sell).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PPG INDS INC (PPG): Free Stock Analysis Report AKZO NOBEL NV (AKZOY): Free Stock Analysis Report VALSPAR CORP (VAL): Free Stock Analysis Report SHERWIN WILLIAM (SHW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research