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.”

Key Stats:

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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