Falling revenue did not prevent S&P 500 (NYSE:SPY) component PPG Industries Inc. (NYSE:PPG) from reporting a profit boost in the second 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 $362 million ($2.34 per share) vs. $340 million ($2.12 per share) in the same quarter a year earlier. This marks a rise of 6.5% from the year-earlier quarter.
Revenue: Fell 0.8% to $3.96 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: PPG Industries Inc. was about in line with expectations as the mean analyst estimate of $2.36 per share. It fell short of the average revenue estimate of $4.15 billion.
Quoting Management: “In the second quarter, PPG delivered the highest quarterly earnings per share in company history as a result of continued execution, strong cost discipline and effective cash deployment,” said Charles E. Bunch, PPG chairman and CEO. “These record earnings were achieved despite significantly weaker European and Latin American currency exchange rates and growth that varied by region and end-use market.” According to Bunch, the negative currency impacts reduced overall sales by five percent and resulted in a negative 10 cents per share earnings impact versus the second quarter 2011.
A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 15.3%.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.
The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 94.3% to $13 million.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to $2.21 per share from $2.14. The average estimate for the fiscal year is $7.96 per share, a rise from $7.76 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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