PPG Industries Earnings: Revenue Lighter Than Expected
Falling revenue did not prevent S&P 500 (NYSE:SPY) component PPG Industries Inc. (NYSE:PPG) from reporting a profit boost in the third quarter. PPG Industries makes coatings, glass, and chemical products.
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PPG Industries Inc. Earnings Cheat Sheet
Results: Net income for PPG Industries Inc. rose to $339 million ($2.18 per share) vs. $311 million ($1.96 per share) in the same quarter a year earlier. This marks a rise of 9% from the year-earlier quarter.
Revenue: Fell 0.1% to $3.85 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: PPG Industries Inc. reported adjusted net income of $2.24 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $2.22 per share. It fell short of the average revenue estimate of $4.15 billion.
Quoting Management: “We delivered record third quarter earnings per share despite uneven demand among regions and end-use markets,” said Charles E. Bunch, PPG chairman and CEO. “Our coatings segments drove the record performance on improved local currency sales and 20 percent earnings growth.”
The company beat estimates last quarter after meeting expectations in the second quarter with net income of $2.36 per share.
Net income has dropped 11% year-over-year on average across the last five quarters. Performance was hurt by a 94.3% decline in the first quarter from the year-earlier quarter.
Revenue has fallen in the past two quarters. In the second quarter, revenue declined 0.8% to $3.96 billion from the year-earlier quarter.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.59 per share, a drop from $1.62. For the fiscal year, the average estimate has moved up from $7.83 a share to $7.98 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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