Sherwin-Williams ( SHW ) shares rose Tuesday after the paint maker posted better-than-forecast second-quarter adjusted profit on higher residential sales. The paint maker also raised its 2024 profit outlook.

Adjusted earnings per share (EPS ) of $3.70 jumped 12.5% year-over-year and beat the $3.46 consensus estimate of analysts polled by Visible Alpha. However, revenue of $6.27 billion was up less than 1% and trailed expectations of $6.33 billion.

The company raised its full-year outlook for both EPS and adjusted EPS. EPS for 2024 is now seen between $10.30 and $10.60, up from April’s guidance of $10.05 to $10.55, while adjusted EPS projections were revised up to a range of $11.10 to $11.40 from $10.85 to $11.35.

Residential Growth Despite ‘Down Market’

Chief Executive Officer (CEO ) Heidi Petz said residential sales were driving demand for the company’s paint products, although “General Industrial demand was soft in all regions.”

“We are clearly seeing a return on last year’s growth investments in residential repaint, where volume increased by a mid-single digit percentage in a down market,” Petz said. “We’re also encouraged by growth in new residential, where we expect continued momentum over the back half of the year.”

Sherwin-Williams shares were 3.3% higher at $333.02 as of 10:18 a.m. ET Tuesday. They have gained about 7% this year.