PPG Industries Earnings: Here’s What Investors Need to Know
PPG Industries Inc. (NYSE:PPG) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are relatively flat.
PPG Industries Inc. Earnings Cheat Sheet
Results: Net income increased 10.19% to $238 million ($1.53 per diluted share) in the quarter versus a net gain of $216 million in the year-earlier quarter.
Revenue: Rose 2.36% to $3.6 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: PPG Industries Inc. reported adjusted net income of $1.53 per share. By that measure, the company met the mean analyst estimate of $1.53. It beat the average revenue estimate of $3.59 billion.
Quoting Management: “Our coatings businesses continued to perform well, growing earnings by 30 percent versus last year’s fourth quarter, and the Optical and Specialty Materials segment delivered similar earnings growth. Commodity Chemicals segment earnings strengthened…
versus last year despite lower than anticipated sales and higher costs stemming from two unplanned production outages. Full year earnings for the Commodity Chemicals segment exceeded the prior-year record. Glass segment earnings were lower, as market conditions for fiber glass remained challenging,” said Charles E. Bunch, PPG chairman and CEO.
Revenue decreased 6.37% from $3.85 billion in the previous quarter. Net income decreased 29.79% from $339 million in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.55 to a profit $1.68. For the current year, the average estimate has moved up from a profit of $7.92 to a profit of $7.94 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)