PPG Industries Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component PPG Industries (NYSE:PPG) will unveil its latest earnings on Monday, January 14, 2013. PPG Industries makes coatings, glass, and chemical products.

PPG Industries Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.54 per share, a rise of 18.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.56. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.54 during the last month. For the year, analysts are projecting profit of $7.94 per share, a rise of 16.9% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of $2.24 per share against a mean estimate of profit of $2.21. The company fell in line with estimates in the second quarter.

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Stock Price Performance: Between October 11, 2012 and January 8, 2013, the stock price rose $24.77 (21.5%), from $115.46 to $140.23. The stock price saw one of its best stretches over the last year between November 15, 2012 and November 23, 2012, when shares rose for six straight days, increasing 7% (+$8.12) over that span. It saw one of its worst periods between May 7, 2012 and May 18, 2012 when shares fell for 10 straight days, dropping 8.7% (-$9.34) over that span.

A Look Back: In the third quarter, profit rose 9% to $339 million ($2.18 a share) from $311 million ($1.96 a share) the year earlier, exceeding analyst expectations. Revenue fell 0.1% to $3.85 billion from $3.85 billion.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 0.8% in the second quarter and dropped again in the third quarter.

Heading into this earnings announcement, net income has dropped 18.4% on average for the last four quarters.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2% in revenue from the year-earlier quarter to $3.59 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.73 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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